Islamic Ruling on Hoarding of Goods in Business

ACJU/FTW/2021/020-435

 

01.09.2021 | 22.01.1443

 

Islamic Ruling on Hoarding of Goods in Business

 

May the peace, mercy and blessings of Allah be with you! All praise is to Allah the Almighty. Peace and blessings be upon His final Messenger Muhammad (peace be upon him), upon His family and his noble Companions!

 

Islam has permitted engaging in business however, it is emphasized that honesty and fairness should be upheld. Allah the Exalted says as follows in the Qur’an:

 

وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا (سورة البقرة : 275)

“But Allah has permitted trade and forbidden interest.” (Surah Al-Baqarah: 275)

 

عَنْ أَبِي سَعِيدٍ رضي الله عنه عَنِ النَّبِيِّ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ، قَالَ: التَّاجِرُ الصَّدُوقُ الأَمِينُ مَعَ النَّبِيِّينَ، وَالصِّدِّيقِينَ، وَالشُّهَدَاءِ. (سنن الترمذي : 1209)

Abu Sa’eed (may Allah be pleased with him) narrated that the Prophet (ﷺ) said: “The truthful, trustworthy merchant is with the Prophets, the truthful, and the martyrs.” (Sunan At-Tirmidhi 1209)

 

As a means of being honest and truthful, Islam teaches us to strictly avoid malpractices in trade such as fraudulent measurements, false swearing, cheating, selling goods by hiding their defects, adulteration and hoarding.

 

Hoarding which has been prohibited in the religion, is when the food items are purchased and stored with the intent of selling with a high profit during desperate times;

الاحتكار : هُوَ أَنْ يَشْتَرِيَ الطَّعَامَ فِي وَقْتِ الْغَلَاءِ لِلتِّجَارَةِ وَلَا يَبِيعُهُ فِي الْحَالِ بَلْ يَدَّخِرُهُ ليغلوا ثَمَنُهُ. (شرح النووي على مسلم)

وَمِنْ الْمَنْهِيِّ عَنْهُ أَيْضًا احْتِكَارُ الْقُوتِ بِأَنْ يَشْتَرِيَهُ وَقْتَ الْغَلَاءِ وَالْعِبْرَةُ فِيهِ بِالْعُرْفِ لِيَبِيعَهُ بِأَكْثَرَ مِنْ ثَمَنِهِ لِلتَّضْيِيقِ حِينَئِذٍ. (تحفة المحتاج في شرح المنهاج)

 

Thus, Islam has prohibited the hoarding of goods for such a purpose, when people are in dire need of those goods. This is against humanity.

 

We have been warned in Ahadith that those who hoard in trade are sinners and are cursed.

 

عَنْ مَعْمَرِ بْنِ عَبْدِ اللهِ رضي الله عنه عَنْ رَسُولِ اللهِ صَلَّى اللهُ عَلَيْهِ وَسَلَّمَ، قَالَ: لَا يَحْتَكِرُ إِلَّا خَاطِئٌ. (صحيح مسلم : 1605)

Ma`mar (may Allah be pleased with him) reported Allah’s Messenger (peace be upon him) as saying: “He who hoards is a sinner.” (Sahih Muslim: 1605)

 

Based on this, the Scholars of Islam have declared that it is prohibited to hoard any good which is essential to the people.

 

(وَ) يَحْرُمُ (حَكْرُ) بِفَتْحِ الْحَاءِ أَيْ احْتِكَارُ (قُوتٍ) كَتَمْرٍ وَزَبِيبٍ وَشَعِيرٍ لِلتَّضْيِيقِ وَلِخَبَرِ مُسْلِمٍ: «لَا يَحْتَكِرُ إلَّا خَاطِئٌ» أَيْ آثِمٌ وَذَلِكَ بِأَنْ (اشْتَرَاهُ فِي) وَقْتِ (الْغَلَا) وَحَبَسَهُ (لِبَيْعِهِ الضَّعْفَا) بِفَتْحِ الضَّادِ وَإِسْكَانِ الْعَيْنِ جَمْعُ ضَعِيفٍ بِأَكْثَرَ مِمَّا اشْتَرَاهُ بِهِ (إذَا السِّعْرُ غَلَا) (الغرر البهية في شرح البهجة الوردية)

 

Currently the whole world, especially our Motherland, is affected by the Corona virus and the rising cost of goods is also affecting the daily lives of the people.

 

Hence, we kindly request the traders to refrain from causing difficulties for the people during this critical situation by hoarding essential goods and to make these goods available at reasonable prices considering the welfare of the people.

 

Generally, it is permissible in religion to earn profits in business. However, such profits must be gained appropriately and one should not transgress limits by causing inconvenience to people. As money acquired from the people without their goodwill, will not be pure.

 

In the current critical situation, people are compelled to purchase essential goods at higher prices unwillingly, as they have no other alternative. It should be noted that when a one’s money is acquired without their goodwill, it shall not be considered as ‘Halaal (permissible).

 

The following Hadith clarifies this subject:

 

عَنْ أَبِي حُرَّةَ الرَّقَاشِيِّ، عَنْ عَمِّهِ، عن النبي صلى الله عليه وسلم لَا يَحِلُّ مَالُ امْرِئٍ إِلَّا بِطِيبِ نَفْسٍ مِنْهُ. (مسند أحمد : 20695)

Abu Hurra ar-Raqashi on his paternal uncle’s authority reported Allah’s Messenger (ﷺ) as saying, “A man’s property taken against his goodwill is not permissible.”  (Musnad Ahmad 20695)

 

May Almighty Allah ease the difficult circumstances and bless us with a healthy and safe environment very soon.

 

Allah the Almighty knows best.

 

 

Ash-Shaikh M.L.M. Ilyas

Secretary, Fatwa Committee,

All Ceylon Jamiyyathul Ulama

 

 

Ash-Shaikh I.L.M. Hashim Soori

Supervisor, Fatwa Division,

All Ceylon Jamiyyathul Ulama

 

 

Ash-Shaikh M. Arkam Nooramith

General Secretary,

All Ceylon Jamiyyathul Ulama

 

 

Ash-Shaikh (Mufti) M.I.M. Rizwe

President,

All Ceylon Jamiyyathul Ulama