The following is the translation of an Arabic Q&A from the website of Sheikh Ata' Abu Rashta.
Question: We know
that it is forbidden for the ruler to fix the price of commodities for the
people because the Prophet (saw) said: "Indeed Allah is the Creator, the
Restrainer, the Reliever, the Provider and the One Who fixes the prices, I wish
to meet Allah in such a state that nobody claims that I have done any wrong to
him either in his blood or his money" as narrated by Ahmad. He (saw)
also said: "Whoever
strives to increase the cost (of products) for Muslims, Allah, the Exalted,
will seat him in the center of the Fire on the Day of Resurrection." narrated by
Ahmad.
Hence the
question is: if some traders in any region fix the price of any commodity, for
instance the rice traders assembled and agreed among themselves upon selling
the rice to the people (other) traders on a fixed price; so in such a case,
fixing the price of this commodity with the traders' mutual consensus shall be
considered Haram (forbidden), or the forbidden is to fix the price by the State
only and not the mutual agreement of traders to fix the price of a commodity?
Answer: The
reason is clear from the second hadith and if the reason exists, the rule will
be applied… So, if the traders' agreement is aimed at increasing the price,
they will be included in the prohibition. However, if their agreement is for
the sake of preventing speculations, and organizing the system of trade in such
a way that no vendor is able to conceal his goods, for example, to sell it on a
higher price and leave the rest of the traders to sell, without exhibiting his
own products i.e. he monopolizes it and then sells it at the time of
deficiency. So, in such a state, the traders are not prohibited to organize the
system of trade. However, the meeting and mutual agreement of merchants on a
certain price is most likely to increase the price, particularly if they
are wholesale dealers of such products, which are not sold by other than them. Therefore,
their agreement in this case, even if it does not result in increasing the
price of the commodity but there is all probability that it may happen, comes
under "means to Haram is Haram". Hence, their participation in fixing
the price of commodity leading to its increment, even if it does not happen
categorically but it is most likely to do so. And the high possibility is
enough here and therefore I believe that the traders' agreement on fixing the
price of a commodity is not permissible. Rather, this matter should be left to
the market rate, leading to fixation of the prices by every trader according to
his conditions. In such a scenario, the things will be easy for the people and
market will be away from the high price.
In this
matter, I admire what was mentioned in the book of Legal System by Ibn Qayyim
Al-Jauziyah under the chapter "chapter
concerning the dealers who deal in the real estate etc on rent" as it was
stated:
"And for this
reason: many scholars such as Abu Hanifa and his companions forbid the dealers
who deal in the real estate etc on rent: from
entering into partnership with each other, for the reason that if they enter
into partnership – and people are in need of them – they increase the charges
on them.
I said: the
price control administrative official should also forbid those who wash the
deceased and carry them from participation for the reason of increasing the
charges on them besides forbidding the partaking of any group whose benefit may
be needed by the people…" (Concluded)
28th Dhu'l-Hijjah, 1432 AH.
24th November, 2011
CE.
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