He is not a farmer, but he buys wheat and presents it to the silos as if he were a farmer
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Fatwa number ( 14870 )
Q: I bought a quantity of wheat from a farmer, for example (50,000) kilograms, i.e., equivalent to 50 tons, at a price of 1.5 riyals per kilogram, for a total amount of (75,000) riyals. I paid it in the contract meeting, and I obtained a certificate from the Ministry of Agriculture in my name, or I borrowed a truck card from a friend to bring in this quantity and sell it to the silos at a price of 2 riyals per kilogram. After the harvest, I hired a trailer and a crane to load the wheat, including its impurities, at my own expense. It is known that the quantity was unknown at the time of loading, either more or less than the agreed 50 tons. If it was more, I was charged for the excess at 2 riyals per kilogram, and if it was less, I was charged at the purchase price of 1.5 riyals per kilogram. The truck arrived at the grain silos, the laboratory, and the scale, and it was accepted. They gave me a receipt for the receipt and purchase of local wheat, which is as
follows: Total weight of wheat 53,000 (53 tons), weight of impurities 2,000 (2 tons), net weight 51,000 (51 tons), net amount due in Saudi riyals 102,000 riyals. At the time of payment, 5% is deducted from the net amount due as zakah on the farmer, an amount of (5,100 riyals) for which I am to be charged. The question here is: What is the ruling on this purchase and sale from the perspective of riba (usury or interest), and what is the solution? How do I deal with the farmer to settle the aforementioned account? And what is the ruling on the friend who gave me the truck card to bring in the quantity and sell it to the silos in his name? Please inform us, may Allah reward you with every good.
A: This transaction is not permissible because it involves lying and deceiving the authorities. It is obligatory for you to repent from that and to give in charity what exceeds the principal in the causes of good. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: I bought a quantity of wheat from a farmer, for example (50,000) kilograms, i.e., equivalent to 50 tons, at a price of 1.5 riyals per kilogram, for a total amount of (75,000) riyals. I paid it in the contract meeting, and I obtained a certificate from the Ministry of Agriculture in my name, or I borrowed a truck card from a friend to bring in this quantity and sell it to the silos at a price of 2 riyals per kilogram. After the harvest, I hired a trailer and a crane to load the wheat, including its impurities, at my own expense. It is known that the quantity was unknown at the time of loading, either more or less than the agreed 50 tons. If it was more, I was charged for the excess at 2 riyals per kilogram, and if it was less, I was charged at the purchase price of 1.5 riyals per kilogram. The truck arrived at the grain silos, the laboratory, and the scale, and it was accepted. They gave me a receipt for the receipt and purchase of local wheat, which is as
follows: Total weight of wheat 53,000 (53 tons), weight of impurities 2,000 (2 tons), net weight 51,000 (51 tons), net amount due in Saudi riyals 102,000 riyals. At the time of payment, 5% is deducted from the net amount due as zakah on the farmer, an amount of (5,100 riyals) for which I am to be charged. The question here is: What is the ruling on this purchase and sale from the perspective of riba (usury or interest), and what is the solution? How do I deal with the farmer to settle the aforementioned account? And what is the ruling on the friend who gave me the truck card to bring in the quantity and sell it to the silos in his name? Please inform us, may Allah reward you with every good.
A: This transaction is not permissible because it involves lying and deceiving the authorities. It is obligatory for you to repent from that and to give in charity what exceeds the principal in the causes of good. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.