Disadvantages of hoarding in Islam
PEOPLE are observing some behaviour and panic in the market due to inflation. So, just like everyone is talking about washing hands and so on we need to remember other Islamic principles when it comes to things like hoarding, fixing prices and deceiving others in the market. These negative practices can lead to major problems in economy as many people live day by day and have little or no savings so artificial and deceptive practices in the economy can lead to the major impact on the wellbeing of society. The Holy Prophet (PBUH) said, “The honest and trustworthy merchant will be with the prophets, the truthful and the martyrs.”
As we are all interdependent Islam has put rules that one should not harm society with his actions. Therefore scholars have ruled that hoarding items that are needed in society (beyond one’s own needs) come under prohibited or unlawful (haram) activities. This is especially true when the intention is to re-sell later and profit from creating an artificial shortage and panic buying in the market. While stocking up some food, medication and like for one’s own need during emergency time is fine, going beyond the reasonable limit is not permissible.
The Holy Prophet (PBUH) said, “No one hoards but a sinner. Do not hoard; otherwise, the Allah Almighty will withhold from you. And Hazrat Umar (RA) said, There is no hoarding in our market, and men who have excess gold in their hands should not buy up one of the Allah Almighty’s provisions which he has sent to our courtyard and then hoard it up against us. Once prices on their own, due to forces like supply and demand increases it is not permissible to interfere with genuine market dynamics. A man came and said to Holy Prophet (PBUH), fix prices. He said: (No), but I shall pray. Again the man came and said to Holy Prophet (PBUH), fix prices. He said: It is but Allah Who makes the prices low and high. I hope that when I meet Allah, none of you has any claim on me for doing wrong regarding blood or property.
In reality increase in prices due to profit incentive encourages people to take higher risk and bring needed goods into the market, until the prices stabilize on their own. Muslims should not present a false picture/description of the items they are selling. Deception is not permissible, especially during these uncertain times when people are desperate and fearful. The Holy Prophet (P.B.U.H) said, “Passed a man who was selling grain. So he put his hand into it and felt that it was damp. The Messenger of Allah then said, “He who deceives has nothing to do with us.
There is no problem in taking legitimate measures for business development, but Islam prohibits it in ways that create social distortions, stop the wheel of economic development, promote greed and increase people’s difficulties, but it is bad. This method is hoarding, which is forbidden and a grave sin. The situation is that someone buys grain during the time of inflation and does not sell it, but stops it because when people are worried, he will sell it at a high price. After days, when it becomes expensive, he sells it. This is neither monopoly nor its prohibition.
The Holy Prophet (PBUH) said, “Allah punishes those who hoard food; hoarding is haram. No one hoards but one who is in error. Whoever hoards food away from the Muslims, the Allah Almighty will afflict him with leprosy and poverty. He (PBUH) condemned this kind of hoarding and said: Whoever withholds grain for 40 days with the intention of increasing inflation, he has distanced himself from the Allah Almighty and the Allah Almighty is disgusted with him. The mention of 40 days is not for limitation, so that less than that is permissible, but the purpose is that it is a punishment for those who become addicted to it.
Some traders take advantage of the opportunity to hide grain from the market and store it in their warehouses and after some time (when the grain becomes expensive and people are worried) bring it to the market and charge the asking price for it. The rich buyers buy at expensive rate but the poor are tempted. Hoarding is a cause of displeasure to Allah and His Holy Prophet (P.B.U.H). In this way, blessings arise from the wealth earned. According to the hadith, the one who hoards to harm the Muslims becomes a victim of leprosy and bankruptcy.
In the matter of avoiding hoarding and benevolence of Muslims, the thinking of the elders of the religion used to be very good. Coincidentally, the price was low, so the traders advised the lawyer to delay till Friday to earn double the profit. He did so and reaped manifold profits. Upon knowing, this elder wrote a letter to the lawyer saying, “Oh so-and-so!” With the security of our religion, we are satisfied with a little profit, but you have done against it, so when this letter reaches you, give all the wealth to the poor of Basra. So create a mind of goodwill towards the Muslims, have complete trust in the Allah Almighty, be content with what you get because sustenance is only what is written in the destiny, you also adopt the style of trade of the elders of the religion, the mercy of the Allah Almighty, your business will flourish.
