Some people lend money to farmers, and when the time comes to sell the harvest, they deliver their goods to the lender because they do not have the funds to display their goods.
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The questioner: Peace be upon you.
The Shaykh: And upon you peace.
The questioner: His EminenceThe Shaykh : Al-Albani?
The Shaykh : Al-Albani is with you.
The questioner : May Allah keep you well, O Shaykh.
The Shaykh : May Allah give you life.
The questioner : It is Hashim from Jeddah calling you.
The Shaykh : Welcome. How are you?
The questioner : May Allah keep you well, O Shaykh. I have a question.
The Shaykh: Go ahead.
The questioner : In our vegetable market in Jeddah, we have a selling method like this: we support farmers abroad with sums of money. We lend them, for example, one hundred thousand or two hundred thousand. They plant, then bring the harvest, the products, and sell them in the Jeddah vegetable market by delivering their goods to the person who lent them this amount. This is because they do not have liquid cash. Some people told us that this is a loan that brings benefit, which is riba. What is your opinion on this?
The Shaykh : Do you mean this is not a salam sale?
The questioner : No, no, it is not a salam. These farmers are abroad, in Syria and Lebanon and so on. They say we do not have liquidity to plant and harvest, meaning to gather the harvest.
The Shaykh : No, my brother, may Allah guide you. Do not repeat the words. Answer the question.
The questioner : What is it?
The Shaykh : What is it! Why did you waste my question?
The questioner : Yes, what is a salam sale?
The Shaykh : Is it a type of salam sale or forward sale?
The questioner : By Allah, I do not know what a salam sale or forward sale is.
The Shaykh : That is the answer. In a salam sale or forward sale, the farmer comes to the wealthy person, the merchant of oil, ghee, wheat, or barley, and says to him: I want from you, for example, one thousand, ten thousand, or twenty thousand, less or more, it does not matter, so that I can plant wheat or barley or oil or olives or something similar, and I will sell you, for example, the measure for so many piastres. They agree on the conditions, such that delivery is after so much time, in the season, for a quantity of so much, at a price of so much, and the price is less than the market price. Is the speech understood up to here?
The questioner : Yes, it is understood.
The Shaykh : So the merchant pays this money to that farmer, and he takes it, plants, and harvests, and so on. Then he comes and sells to the one who had lent him that money at the lower price they agreed upon, and the price is higher at the time of delivery. This is called a forward sale. If what you are asking about is of this kind, then it is permissible by the Shari'ah. And if it is not of this kind, then the answer, as you quoted from some of them, is that this is a loan that brings benefit, so it is riba.
The questioner : No, in reality, it is not a salam sale or forward sale.
The Shaykh : All right, you have understood the answer.
The questioner : So, another question follows from this.
The Shaykh: And upon you peace.
The questioner: His EminenceThe Shaykh : Al-Albani?
The Shaykh : Al-Albani is with you.
The questioner : May Allah keep you well, O Shaykh.
The Shaykh : May Allah give you life.
The questioner : It is Hashim from Jeddah calling you.
The Shaykh : Welcome. How are you?
The questioner : May Allah keep you well, O Shaykh. I have a question.
The Shaykh: Go ahead.
The questioner : In our vegetable market in Jeddah, we have a selling method like this: we support farmers abroad with sums of money. We lend them, for example, one hundred thousand or two hundred thousand. They plant, then bring the harvest, the products, and sell them in the Jeddah vegetable market by delivering their goods to the person who lent them this amount. This is because they do not have liquid cash. Some people told us that this is a loan that brings benefit, which is riba. What is your opinion on this?
The Shaykh : Do you mean this is not a salam sale?
The questioner : No, no, it is not a salam. These farmers are abroad, in Syria and Lebanon and so on. They say we do not have liquidity to plant and harvest, meaning to gather the harvest.
The Shaykh : No, my brother, may Allah guide you. Do not repeat the words. Answer the question.
The questioner : What is it?
The Shaykh : What is it! Why did you waste my question?
The questioner : Yes, what is a salam sale?
The Shaykh : Is it a type of salam sale or forward sale?
The questioner : By Allah, I do not know what a salam sale or forward sale is.
The Shaykh : That is the answer. In a salam sale or forward sale, the farmer comes to the wealthy person, the merchant of oil, ghee, wheat, or barley, and says to him: I want from you, for example, one thousand, ten thousand, or twenty thousand, less or more, it does not matter, so that I can plant wheat or barley or oil or olives or something similar, and I will sell you, for example, the measure for so many piastres. They agree on the conditions, such that delivery is after so much time, in the season, for a quantity of so much, at a price of so much, and the price is less than the market price. Is the speech understood up to here?
The questioner : Yes, it is understood.
The Shaykh : So the merchant pays this money to that farmer, and he takes it, plants, and harvests, and so on. Then he comes and sells to the one who had lent him that money at the lower price they agreed upon, and the price is higher at the time of delivery. This is called a forward sale. If what you are asking about is of this kind, then it is permissible by the Shari'ah. And if it is not of this kind, then the answer, as you quoted from some of them, is that this is a loan that brings benefit, so it is riba.
The questioner : No, in reality, it is not a salam sale or forward sale.
The Shaykh : All right, you have understood the answer.
The questioner : So, another question follows from this.
Source
www.al-albany.com
The Arabic text is copied verbatim from the original source, without any edits.