The Case of Monopolization (Hoarding) Goods in Public Demand

“Abu ‘ Abd Allah (a.s.), has said, ‘Monopolization (Hoarding) of goods in public demand applies to wheat, barley, dates, raisins and cooking butter only.’”

“Abu ‘Abd Allah (a.s.), has said, ‘Once during the times of the Messenger of Allah, O Allah, grant compensation to Muhammad and his family worthy of their services to Your cause, a severe shortage of food took place and the Muslims came to the Messenger of Allah saying, “O Messenger of Allah, food supplies are exhausted and there is no food left except that which so and so has hoarded; so command him to sell to people.” He, the Messenger of Allah praised Allah and glorified Him and then said, “O so and so, the Muslims have informed me that food supplies have become serious. Food is not available except that which is with you. You must bring it in public and sell them as you like, but you must not keep it in hoarding.’””

“Abu ‘Abd Allah (a.s.), has said, ‘Hoarding means buying such food supplies of a city beside which no other food supplies are available. If other food supplies are available in a city or someone else sells food, then it is permissible to buy food supplies and keep them hoarded to sell later with higher prices.’ He (the narrator) has said, I asked him about oil and he replied, ‘If it is available with people other than you then there is no offense in it.’”

“Abu ‘Abd Allah (a.s.), once asked me, ‘What is your business?’ I replied, ‘It is selling wheat. At times business is good and sometimes it is not good so I hold selling.’ He (the Imam) then asked, ‘What do people who visit you say about it?’ I replied, ‘They say, “He is a hoarder.’” He (the Imam) asked, ‘Does anyone else sell wheat besides you?’ I replied, ‘I sell only one out of a thousandth of what is sold in the market.’ He (the Imam) said, ‘Then there is no offense in what you do. The person who hoarded food was Hakim ibn Hizam. He would buy all food supplies that came to al- Madinah. The Holy Prophet, O Allah, grant compensation to Muhammad and his family worthy of their services to Your cause, passed by his place and said, “O Hakim ibn Hizam, you must not hoard (food supplies).””’

“This is concerning my question before abu ‘Abd Allah (a.s.), about a man who hoarded food supplies and waited for higher prices. Is it permissible?’ He (the Imam) replied, ‘If there is plenty of food available to people to buy, then there is no offense in it; but if there are food shortages and people are not able to buy from other places, then it (such hoarding) is undesirable to leave people without food.’”

“Abu ‘Abd Allah (a.s.), has said that the Messenger of Allah has said, ’One who supplies the market receives his sustenance and a hoarder is condemned.’”

“Abu ‘ Abd Allah (a.s.), has said, ’At a time when food is abundantly available, keeping food for forty days is considered hoarding, but at the time of shortages of food holding back food supplies for three days is considered hoarding. After forty days at a time when food is abundant a hoarder is condemned and at the time of scarcity of food after three days the hoarder is condemned.’”