#228: Ruling on Hoarding Farm Produce
QUESTION
“Malam pls what’s the ruling on a farmer who harvest his crops(staple) then store it and then when it becomes scarce he sells it at a high price thus gaining more profit than those who sold it during its season. Is there any difference if it had been a cash crop etc”
ANSWER:
Alhamdulillaahi Rabbi Al-‘Aalamin!
The matter you asked in the first question looks like the matter referred to in the Shari’a as ‘Al-Ihtikaar’ (Hoarding).
About Hoarding, the Rasul – salallaahu ‘alayhi wasallam – said:
((لا يحتكر إلا خاطئ))
“Nobody hoards goods except the sinner” Recorded by Imaam Muslim
In the ‘Al-Mustadrak’ of Imaam Al-Haakim, he transmitted from ‘Abdullah bn Umar – radiyallaahu ‘anhuma – that the Rasul – salallaahu ‘alayhi wasallam – said:
“Whosoever hoards edible goods for 40 nights has freed himself from Allaah and Allah – Ta’aala – has freed Himself from him”
And in another Hadith also found in Al-Mustadrak, “The one who hoards is cursed.”
The last two Hadiths are weak as Imaam Ibn Hajar Al-Haythami mentioned but he declared Hoarding among the Kabaa’ir (major sins) in his book ‘Az-Zaajir ‘An Iqtiraafi Al-Kabaa’ir”
Due to the last two Ahaadith, some of the Ulamaa mentioned that hoarding has to be of food before it is declared as Haram.
This is the opinion of some of the Shaafi’is but the evidences are well against them.
Imaam Ar-Ramli Ash-Shaafi’i said in his Haashiya: “It is supposed to be generic and made to encompass everything that people need of what is eaten and what is worn.”
Ref: Haashiyatu Asnaa Al-Mataalib 2/39
That said, there are conditions in Islam for a hoarding to be declared Haraam. They are:
A. The good must be bought and not be a produce of one’s own farm. What that means is that if you harvest and save your goods till the time of difficulty and then bring it out for selling, you haven’t done a thing that is Haraam.
B. The buying must be in a time of cheapness to be kept till a time of difficulty and high price.
C. By buying that good, there must be harm on the people and the price must be affected. What that means is that if, by buying these goods, the people are not affected by it and the market price is not tilted, then it can’t be referred to as
a hoarding that is Haraam in Islaam.
D. What is bought must be something that is beneficial to people and not harmful to people such as hemp and alcohol. The mere transactions of these items is declared Haram, whether by hoarding or not.
When these three conditions are fulfilled, it becomes Haraam.
Allaahu A’alam!
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