Ruling on buying grain before it is harvested

26-12-2013 | IslamWeb

Question:

Asselamualeykum wr wb. Is that Ok if some one gives money at somewhat lower price than at the market price, to collect the grain in the future , because the farmers need this money to collect their harvest?. And can one keep up this product and sell it when it becomes expensive??

---

Answer:

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His Slave and Messenger.

If the crops appear to have become ripe, then it is permissible to sell the grain while it is still in its ears, according to the  preponderant opinion of the scholars. Ibn Qudaamah said in Al-Mughni: “It is permissible to sell…the ears of ripe grains, and it is permissible to sell the shoot of fruit of the palm tree before it splits open, whether it is already cut off to the ground or still on the tree. This is the view of Abu Haneefah and Maalik . Whereas Ash-Shaafi’i said that this is not permissible until its upper peel comes off, except in regard to the shoot of fruit of the palm tree and the ears of grain, according to one of his two opinions.”

However, before it appears to be ripe, it is not permissible to sell it with the condition that it is to be left until it becomes ripe. However, the farmer and trader may agree to what is called a Salam contract, which is that the contract will be on a fixed quantity of grains, for example, in the liability of the farmer which he gives to the trader at an fixed time in return for a price which the farmer receives in full at the time of the contract.

If the crop of the seller is damaged, then this does not affect the contract because the contract is according to named specifications and not any specific entity.

The evidence that the Salam contract is permissible is that Ibn 'Abbaas related that the Prophet came to Al-Madeenah and the people there used to buy and sell according to the Salam contract for two or three years. So the Prophet said: “Whoever makes a Salam contract on anything, let him make the Salam contract on a fixed measure, a fixed weight, and to a fixed time.”

For information on buying goods and waiting until their price goes up, please refer to Fatwa 93779.

Allaah Knows best.