The Ruling on Selling Wheat for Wheat with Deferred Payment and Selling Defective Goods for Good Ones

The questioner:
The Shaykh’s son: Who gave wheat to receive it when it is harvested?

The Shaykh:
Regarding the common practice of selling. That is, he sells wheat for wheat on a deferred basis. This is also riba, specifically riba al-nasi'ah (usury of deferment). It is not permissible to sell wheat for wheat on a deferred basis, even if the amounts are equal, even if they are equal, because this is not a spot transaction. Barley for barley, for example, must be equal in amount and hand-to-hand; dates for dates, for example, must be equal in amount and hand-to-hand; gold for gold, for example, must be equal in amount and hand-to-hand; silver for silver, for example, must be equal in amount and hand-to-hand. Immediate possession and equality are required if the type is the same. I repeat: immediate possession and equality are required.

Another questioner:
Speak to me, speak to me.

The Shaykh:
And if it is in the category of a loan, it is also riba, because an increase is not permissible in a loan. Yes.

Another questioner:
But it is not sold. That is, old dates.

The Shaykh:
Even if one type differs from the other in quality or inferiority, an increase is not permissible; equality is required. If he wants to buy good dates and has inferior ones, he sells the inferior ones for dirhams and buys good ones with the dirhams, as the Prophet (peace and blessings be upon him) guided. He sells what he has of inferior dates or bread for its equivalent value. He sells it, and buys good ones with the dirhams, adding to them if he wishes, and buys good ones. He said (peace and blessings be upon him): The "jam" is the inferior one, and the "janiyab" is the good one.

Another questioner:
Consider it a loan, Shaykh. Huh? Consider it a loan and no increase is wanted. That is,

The Shaykh:
He takes wheat of the same type without an increase. Yes, indeed.