Ruling on one who stipulates in his loan that the borrower may not sell his produce to anyone but him
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Question: His Eminence the Shaykh / Abdul Aziz ibn Abdullah ibn Baz (may Allah preserve him).
Peace, mercy, and blessings of Allah be upon you: I work as a broker in the wholesale market in Egypt. The farm owner brings his produce, such as vegetables and other items, to the shop, and I sell it on his behalf as a broker. I have a commission for this, which I determine with the customers, and we do not disagree on that. However, before the harvest is ripe, the farmer comes to take a loan, and I give it to him, but he must not sell his produce to anyone but me, and I do not charge him a higher commission than others. Is this a loan that yields benefit? Please give us a ruling, may Allah reward you with good. If this is a type of riba, what should be done, given that this practice has become widespread? We request an authoritative fatwa signed by you.
Answer: And upon you be peace, mercy, and the blessings of Allah. After that: If the broker stipulates to the farm owner in his loan to him that he must not sell his produce to anyone but him, then this loan is considered one of the loans of riba; because it is a loan that yields benefit. Therefore, it is obligatory to abandon it and repent to Allah (Glorified and Exalted is He) for what has passed. May Allah guide them all, and peace, mercy, and blessings of Allah be upon you.
Grand Mufti of the Kingdom of Saudi Arabia
Abdul Aziz ibn Abdullah ibn Baz
Peace, mercy, and blessings of Allah be upon you: I work as a broker in the wholesale market in Egypt. The farm owner brings his produce, such as vegetables and other items, to the shop, and I sell it on his behalf as a broker. I have a commission for this, which I determine with the customers, and we do not disagree on that. However, before the harvest is ripe, the farmer comes to take a loan, and I give it to him, but he must not sell his produce to anyone but me, and I do not charge him a higher commission than others. Is this a loan that yields benefit? Please give us a ruling, may Allah reward you with good. If this is a type of riba, what should be done, given that this practice has become widespread? We request an authoritative fatwa signed by you.
Answer: And upon you be peace, mercy, and the blessings of Allah. After that: If the broker stipulates to the farm owner in his loan to him that he must not sell his produce to anyone but him, then this loan is considered one of the loans of riba; because it is a loan that yields benefit. Therefore, it is obligatory to abandon it and repent to Allah (Glorified and Exalted is He) for what has passed. May Allah guide them all, and peace, mercy, and blessings of Allah be upon you.
Grand Mufti of the Kingdom of Saudi Arabia
Abdul Aziz ibn Abdullah ibn Baz
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.