World Journal of Islamic History and Civilization, 2 (4): 216-231, 2012

ISSN 2225-0883
© IDOSI Publications, 2012
DOI: 10.5829/idosi.wjihc.2012.2.4.2404

The Marketing of Agricultural Produce in an Islamic Agricultural Economy

Ahmad Murtala

Department of Islamic Studies, Bayero University Kano, Nigeria

Abstract: The main purpose of this paper is to expose the ideal system of Islam with regards to the marketing
of agricultural produce. Despite the modern definition of agriculture is wider than in the past, but Islam for its
dynamism has provided rooms for any arising issue. Thus, the present study has highlighted the major aspects
of marketing of agricultural products and stated the rightful Islamic ruling attached to it. It is hoped that the
paper will simplify understanding such terms like perfect market, imperfect market, the pricing methods and the
basic principles on which such marketing is built upon.

Key words: Marketing Agriculture Agricultural product Pricing methods Marketing channel
Promotion Distribution

INTRODUCTION Muslim plants a tree or cultivates a crop, no bird or human

being eats from it without its being accounted as a
It is quietly obvious that the agricultural sector is rewardly charity for him” (Sahih Muslim; Vol. 10, p 213).
one of backbones of any local and national economy. The Prophet (Pbh) also stressed on some special aspect
For it provides jobs and livelihood for the people and like irrigation and the redemption of land for agricultural
has a great influence in facilitating the means of earning purposes. He said: “Whoever brings dead land to life,
foreign exchange. It helps, indeed, in enhancing the rapid for him is reward in it and whatever any creature seeking
growth to any nation that has adopted good agricultural food eats of it, shall be considered as charity from him”
measures for making general infrastructure and providing (Musnad Ahmad, Vol. 2, Hadith No. 14271).
for the well-being to the populace. Thus, it properly tends Conspicuously enough, the meaning of agriculture
to be true if someone claims that the thriving of the has nowadays become broader than it had been in the
whole national and international economy hinges upon literature of the medieval ages. By the effect of new
the prosperity in this sector. classifications introduced in the sciences, the content of
With this and much more in mind, Islam offers agriculture has been moved from production and
the agricultural sector a special consideration and cultivation of crops only, to become an art involving the
impatiently enjoins Muslims to benefit as much as they production of plants and animals for man's consumption,
can from the bounties of Almighty Allah, which He which might be in the form of food, building, ornament
has widely bestowed on the earth. This has clearly and clothing, or in raw materials for use in industries. This
appeared in numerous Qur’anic verses from which are evidently consists of the following:
the following: “It is He who has spread out the earth
for his creatures. Therein is fruit and date palms, with Crop farming, which includes food crop like maize,
spatters and husked corn and scented herbs. Then which wheat, rice, vegetables, etc. and tree crops, known as
of the favours of your Lord will you deny?” (Q 55:10-13). cash crops like cotton, coffee, cocoa, etc.
“Then let man look at his food, how we pair forth water Livestock like cattle, goats, horses, mules, etc.
in abundance, then we split the earth into fragments Fishing; rearing different spices of fish.
and produce therein corn and grapes and nutritious Hunting; i.e. catching wild animals for human
plants” (Q 80: 24-28). consumption.
There are several Prophetic hadiths in which the Forestry; i.e. cutting down useful trees and
Prophet (pbuh) commends agricultural production and processing the logs into timber, woods, ornament
ordered Muslims to engage in it. He said: “When a flowers, etc.

Corresponding Author: Ahmad Murtala, Department of Islamic Studies, Bayero University Kano, Nigeria.
Tel: +2348032906184, E-mail: murtalamansur@yahoo.com.
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The Islamic juristic books have dealt extensively each Sheikh Afzal-ar-Rahman rightly said: “According
one of the stated types. As for the first two, they have to the Muslim jurists, exchange is defined as the
been vividly expounded in the section of food and drink transference of one's goods in return for the goods or
in Jurisprudence books. While the last three were and another by mutual consent”[1]. Similarly, Professor
consequently are fully discussed in the sections dealing A.J. Doi defined "Bai" or "Sale" as: “The delivery of a
with hunting (Sayd). definite object which possesses legal value in exchange
It is clear that a Muslim must always be guided by for something equivalent in value (called the price)”[2].
the Islamic principle of Halal and Haram in his daily life. It is clear from the two definitions that the market is
This, of course, is the starting point of any business he or a means of human mutual interaction and a physical
she undertakes as a means of livelihood. The Prophet station of the continuance of supply and demand. If it is
(pbuh) had appreciated the habit of hard work for getting governed by appropriate rules and regulations, it would
livelihood. He, according to Miqdam's report, said: “No definitely keep the socio-economic equilibrium of any
one has earned a better living than the one who has nation from collapsing.
earned it with his own hands” (Bukhari, Vol. 4, Hadith No. In Islam, the market is considered as the very aspect
2072). The Agriculture, of course, would be the first to be that physically exposes the greatness and benevolence of
borne in mind, among the whole means of earning, Allah between His creations. It is a mirror to see Allah’s
acquisition and work with the hands. Hence, the wisdom of creating mankind at different levels with
marketing of the unlawful products like pigs, marijuana, different capacities of earning and wanting. A glance at
tobacco and the like, is categorically Haram. the periodical fluctuations of the market also ensures that.
It is worth emphasizing here that over any acquired This can also be boldly observed through the following
wealth, be it agricultural commodities or other kinds of verses: “It is We who portion out between then their
wealth, the owner has three different basic rights, which livelihood in the life of this world. And we raise some of
together expose his full right of ownership, namely: them above others in ranks, so that some may command
work from other” (Q 80: 24-28). He also says: “O you who
The right of private ownership of the capital. It believe, eat not up your property among yourselves in
peculiarly belongs to him alone: no one shares it with vanities; But let there be amongst you traffic and trade by
him. mutual good will” (Q 4: 29). He also said: "Allah has
The right to exploit and utilize the wealth in line with permitted trade and forbidden usury” (Q 2: 275). “O you
the Islamic principles of utilization. who believe ! When you deal with each other in
The last and more paramount among the three is the transactions involving future obligations in a fixed period
right of disposal, where the wealth can be offered as of time, reduce them to writing; let a scribe write down
a gift, or given as charity or even sold to somebody faithfully as between the parties... But if it can be a
else. transaction which you carry out on the spot among
yourselves there is no blame on you if you reduce it not
Under these rights comes the issue of marketing, its to writing” (Q: 2: 282).
nature and problems and upon it our discussion based. These verses and a lot of others indicate that the
scope of the market, in the Islamic perspective, is be
The Scope of the Market and Marketing in the Islamic governed by mutual consent and must be regulated by
Perspective: The word ‘market’ simply means the place high moral standards to ensure stability, prosperity and
or all the market structure for selling and buying. complete the physical and spiritual development of both
While the word "marketing", known in Islam as ‘Bai’ ’, the producer and the consumer.
denotes the relationship between the buyer and the The foregoing discussion clearly explains into the
seller. In the Islamic perspective, the word quietly definition of "marketing". It can simply be defined as: the
expresses the buyer's desire/need towards the product combination of activities directed as satisfying needs and
and the ability of the seller to fulfill that desire/need wants through exchange processes. As a result of that,
through transferring his products to the buyer in the ultimate purpose of marketing is to bring about mutual
return of another product by barter or in cash and all transaction according to the rules and regulations of the
conducted under the prescriptions of the Sharia. Let us Shari'a.
examine one or two among the Islamic definitions and Essentially, these phrases: "combination of
scope of Bai'. activities", "need and wants" and "exchange processes"-

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are a typical portrayal of the fact that the term ‘marketing’ It must be borne in mind that even though the parties
is wider than that of the mere ‘selling’ of products. concerned are in agreement with such prohibited
Because it involves, in the technical sense, the whole transactions, still it must not be accepted, no matter how
business activity from the production of any commodity the strength of their agreement is, for the verdict of Allah
to pricing, promotion and distribution up to the end-uses is superior and must strictly be followed before
or consumption of the commodity. The combination of considering its outcome lawful. In his valuable book, al-
these essentials (product, place, price and promotion) is, Muwafaqat, Imam Al-Shatibi explains this principle
economically speaking, termed as "marketing mix." We extensively and sums up that: “the Shari'a has been set up
shall later analyze each of them in order to they see how generally for the public interest, so, the intention of the
affects the production up to the end-user of agricultural Mukallaf (matured Muslim) must be in line with the goals
commodities. prescribed by the law-giver in the Shari'a to safeguard that
interest” [3].
The Basic Principles of Marketing Agricultural
Produce: Islam is not a subtle religion; rather it is divinely The Significance of Custom: The application of the
governed by principles and known for their strong moral principle of custom, jurisprudentially known as 'Urf' or
restraints. This, undoubtedly, is a good starting point for “Adah”, is of paramount importance. ‘Urf means the
analyzing the marketing of agricultural produce in the prevailing practice of reasonable people in the society.
Islamic perspective. Some basic etiquettes that shall be It is noteworthy that this principle is among the
taken and referred to as the general guidelines to both secondary sources of the Shari'a and is considered to
seller and buyer are summarized below: regulate the limits and determine the grey area in
public matters as long as there is no decisive provision
Good Intention: The first and paramount principle to on such matters in the Qur'an and Sunna. The Jurists from
be noticed is making a good intention. As we know in almost all the Schools have commended the use of ‘Urf
every walk of life the intention of a Muslim is always and referred to it as authoritative. Imam al-Sarakhsi, a
required to be in conformity with the ultimate goals prominent Hanafi jurist, phrased this maxim as: "A verdict
(Maqasid) of the law-giver, Allah the Almighty. If a justified by custom is like that justified by legal texts",
Muslim keeps observing Islamic injunctions as perfectly “What is known by ‘Urf is like the condition laid down by
as he has been commanded, he is, consciously or not, the nass” and “The usage is decisive when there is no
performing Ibadah. The Qur'an has been repeatedly contrary statement in the text”[4].
saying: “Say, indeed, my prayer, my rites of sacrifice, my There have been numerous commercial transactions
living and my dying are for Allah, Lord of the worlds. No and economic dealings, which are regulated by the 'Urf.'
partner has He. And this I have been commanded and I Good examples from agricultural produce are found in
am the first among you of the Muslims” (Q 6:162-163). what is known as “share-cropping contract” (Muzara’ah)
"And they have been commanded no more than this: to and “Future trading” (Salam). It is also applicable in the
worship Allah” (Q 95:5). He also said:"I have only created cases where the producers are not aware of the actual
Jinn and Men that they may serve (worship) me” (Q 51: market price; their commodities could be sold by agents
56). or marketing boards and farmers' cooperatives. If it is sold
In the economic sphere, however, all contracts and at what is considered customarily the market price, the
transactions must be vindicated by truthfulness and transaction would be valid, but if it is at a lower price, the
honesty; the two very morals that Allah at different times producer has the right to accept or reject it. Sheikh Ibn
commanded to be fulfilled in any transaction. He says in Taimiyyah made a brief explanation concerning such form
one of the verses: "O believers, perform you contracts” of transaction, saying: “The traders are not entitled to
(Q 5:1). charge one price from hagglers and a higher one from
The straight implication of the verse denounces those who rely upon their word, or those who are ignorant
using any sort of device for achieving evil ends. Being of the market price. A tradition says: ‘To exploit the
contradictory with the ultimate goals of the Shari'a, it is person who confides in you is akin to usury’. This
not permitted to arrange a contract involving any form of practice is similar to the practice of intercepting the market
usury and fraudulence, or to sell raw materials to the suppliers” (Ibn Taimiyyah, Al Fatawa, Vol. 7 p 52).
industries or individuals that directly or indirectly may use
them to produce intoxicants or any other harmful Mutual Agreement: The validity of any transaction has
products. wholly rested on mutual consent, which explicitly shows

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a definite agreement between the parties concerned. The And the sale of an ambiguous property, like to say,
agreement can be shown through various ways, either I sell to you a book or car without any identification,
verbally, in writing, by any recognized signs, or by any make or model.
conduct that could unequivocally express the satisfaction
of both. In this regard, Allah says: “O you who believe, As for fraudulence, it has been defined as hiding the
eat not up your property among yourselves in vanities; truth or the actuality of the commodity by telling lies and
but let there be amongst you traffic and trade, by mutual presenting it to the buyer in a suspicious manner. On this
good will” (Q 4: 29). Abu Huraira (R.A) reported that the evil-doing, Allah warned the entire Muslim Ummah by
Messenger of Allah said: "The two (seller and buyer) saying: “O you that believe, betray not the trust of Allah
must not part away except by mutual consent"(Musnadu and the Messenger, nor misappropriate knowingly things
Ahmad, Vol. 2, p 36). entrusted to you” (Q 8: 27).
The Sharia nullifies any transaction performed under Abu Huraira (R.A) narrated that “the Prophet (pbuh)
coercion, neither the seller should be forced nor the passed by a heap of wheat. He thrust his hand therein and
buyer. Despite the essentiality of the principle of mutual his fingers touched moisture. He asked, ‘O owner of
agreement, however, there are some exceptions that could wheat! What is this?’ He replied; ‘Rain fell on it, O
invite the State to intervene. Thus, when the activities of Messenger of Allah!’ He enquired: ‘Have you not done
the one party or both are harmful to the society by using so over the wheat so that people may see it? Who so acts
monopoly policies, thereupon the government can with deceit is not of me” (Sahih Muslim, Vol. 2, p 109). In
intervene without seeking the agreement of the parties another tradition the Prophet (pbuh) said: “Fraud leads to
concerned. hell and whoever starts some practice which is not in
accord with our ways is condemned"( Sunan Abu Dawud,
The Prohibition of Dubiety and Fraudulence: The Islamic Vol. 3, Hadith No. 3505).
set up of marketing is frowns on any transaction that As for the case of selling what is not in possession,
involves any of the following: I-Dubiousness and the it is forbidden, according to the report of Hakim bn Hizam.
sale of the unknown; ii- Fraudulence or deception and He said: “I asked the Messenger of Allah, A man comes
uncertainty of the commodity to be bought or sold; iii- to me and intends to make a bargain with me, but it is not
Sale of commodities not in possession. in my possession. Shall I purchase it from the market?’ He
Each one of the stated items symbolizes a breach of said: Don’t purchase what is not in your possession”
mutual consent between the parties concerned and it (Sunan Abu Dawud, Vol. 3, Hadith No. 3505).
may, in turn, entrench cruelty, treacherousness and Agricultural produce, especially foodstuffs, is
dishonesty in the society. primarily meant in this Hadith, but many jurists held the
To take the first type mentioned, dubiety, which is meaning of the stated hadith in its generality to cover all
not, as Ibn Taimiyyah argues, a prescription of the sorts of products. Ibn Abbas was among them. He
transaction itself, rather, is more the way in which a asserted that: “As for that of which the Prophet
commodity is sold, or in the quantity and measurement of prohibited, it is food crops till they come in possession”.
the product, et.c, like the selling of fruits before they -Then Ibn Abbas remarked: “I don't consider anything,
ripen (Ibn Taimiyyah, Al Fatawa, Vol 29 p 25). Hence, but just like food crops” (Bukhari, Vol. 4. Hadith No.
the correct meaning of dubiety would be any 2135).
transaction that involves unpredictable ends. We are Imam Shafi’i, among the great Imams, admired this
aware that all dubious transactions are strictly view and expounded it very much, resting his point of
prohibited by the Prophet (pbuh) in a number of view on Ibn Abbas's fatwa. He further stated that other
hadith. products are analogous to food crops. The reality of the
A cursory look at the texts shows that the Sharia has matter, he argues, is that when I bought something from
prescribed three distinctive types of dubiety, which are all someone else, I may buy either real assets or what is not
prohibited, namely [5]: possessed. If I purchase the un-possessed, it would
quietly not be considered as asset, so it can be lost and if
The sale of non-existent things like bargaining it happened like that, the responsibility to redeem would
animals not yet born or selling fruit before it ripens. be upon the person whom I bought it from. Because I
The sale of things which are difficult to hand over to bought it before it comes in my possession and it is not
the buyer like a run-away camel. permissible to sell what I did not properly own [6]. Of

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course, Imam Shafi’i’s view, for its strong basis, is worth The Prophet stated that one sa'a, which is worth four
recommending. mudd, must be given instead of what has been milked out
from each head of cattle.
The Right of Option: Now we come to another excellent
principle, which is the right of option. It is clear that Islam, It is legally permissible to buy a certain commodity
being the only religion that touches every walk of life and by description, on condition of scrutinizing it and
has eventually enabled both the buyer and seller to after it has been physically brought to sight can be
perfectly exercise their legally prescribed freedom of accepted if it meets the prescription accordingly or
option. The right of option gives the party concerned the rejected if not.
opportunity for accepting or repudiating the transaction.
It is can be segmented into three types: The Prohibition of Riba: The prohibition of Riba is
another basic principle. No doubt, Islam strikes
The right of option during the session of the vehemently at usury/interest (Riba) in any form it can be
transaction, 'Khiyar al- Majalis'. Each of the two sides and clearly condemns all that is akin to it in the severest
has the right to accept the sale or reject it due to terms like the following: “Those who devour usury will
some reasons that occurred to him before the not stand except as stands by his touch who has been
transaction is completed. On this point, the driven to madness. That is because they say, Trade is like
Prophet (pbuh) was reported as having said that: usury. But Allah has permitted trade and forbidden usury;
"Both the buyer and the seller have the option of those who after receiving direction from the Lord, desist,
cancelling or confirming a bargain unless they shall be pardoned; for the past their case is for Allah (to
separate, or the sale is optional" (Bukhari, Vol. 4, judge); but those who repeat (the offence) are
hadith No. 2201). companions of fire; they will abide therein (forever). Allah
will deprive usury of all blessing, but will give increase for
This hadith has double implications. On one hand, it deeds of charity; for He loves not creatures ungrateful
justifies what we quoted it for. While on the other hand, and wicked” (Q 2: 275-276). He also says: “O You who
it brings forth that the sale can be run on the condition of believe! Fear Allah and give up what remains of your
an option; that the buyer may be given a period of time to demand for usury, if you are indeed believers. If you do it
examine the validity of the commodity under the provision not, take notice of war from Allah and His Messenger, but
of a guarantee and the final determination rests upon what it you turn back, you shall have capital sums, deal not
he chooses in the end. unjustly and you shall not be dealt with unjustly” (Q 2:
278-279).
The right of option due to detecting a defect in the The Prophet has expressed his strong resentment
commodity. Under such right, the wronged side can against those who indulge in usurious dealings. He
annul the transaction as long as he doesn’t make use plainly, as the narration of Jabir shows, “cursed the
of it. But if he did, his right automatically lapses. He devourer of usury, its payer, its scribe and its two
also has the second option of accepting the sale in witnesses. And He said that they are equal in sins”
order that he would be given compensation in lieu of (Muslim, Vol. 11, p 26).
the defect hidden from him [7]. Riba literally means an excess, increase or addition
[8]. And technically, it is classified into two broader kinds,
In the case of buying goods, goat, cattle or camels namely Interest in debt (Riba al Nasi’a) and Interest in
for breeding for milk, the producer has been warned not Barter (Riba al Fadal).
to deceive the buyer by keeping the udder of the Riba al Nasi’a is an access charged for a delayed
product full of milk as a sign of goodness and payment of debt. The creditor fixes a certain amount over
efficiency. If it is bought in such a condition, the the debt he gives out, provided the debtor exceeds the
buyer can exercise his right of option to reject or retain returning date. He loans one million in condition, if
the sale according to his wish. The Prophet (pbuh) delayed, for it to be returned to him an excess of, say, ten
said: "Who so purchases a goat full of milk, the udder thousand or so apart from the principal [9].
has got an option for three days. If he then returns it, he The Conventional bank-type of Riba, known as Riba
shall return one sa'a of food-grain with it" (Bukhari, Vol. al Qurud or Interest on Loan, is a typical branch of
4, Hadith No. 2076). interest in debt. It is where an excess is already stipulated

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from first instance in some percentage and is going to be It is worth noticing that some scholars opined that
increasing every day without limits. the prohibition of Riba al-Fadhal is confined only to the
But as far as the marketing of agricultural outputs is types stated in the Hadith and no other types would be
concerned, the Riba al-Fadal is the most useable of the added to them. Among those who concur with such view
kinds of Riba. And it has been clarified by the Sharia that are Qatada, Tawus, Uthman al-Batti, Ibn Aqil al-Hanbali,
only two things render the transaction of agricultural Amir al-San'ani and the entire Zahiri School of law [11].
produce to be of Riba al Fadal. Thus, Other scholars uphold the view that extends the
injunction to all commodities that are identical or have
Homogeneity between the units of exchange like quite similarity with the stated ones in the text [12].
wheat for wheat, rice for rice, milk for milk. The sale, Imam Abu Yusuf, furthermore, in viewing the text
therefore, of two loads of barley, in exchange for one with the principle of custom in sight, sees the changing of
load of wheat does not constitute usury, since these time and space as the basic criteria that should be
products are not homogeneous. regarded as the standard modality in identifying Riba al-
Inequality in measurement and weight like one kilo or Fadal. Hence, according to him, since the commodities
Sa' of good quality and well-refined rice in lieu of two can change with the changing of time, space and locality,
kilo or Sa' of less refined or lower quality of rice, the nature of this type the Riba follows suit: therefore, it
likewise one gallon of cow's milk for two gallons of would only be determined by being customarily eatable
goat's [10]. commodities [13].
The efficient cause behind considering all similar
The Prophet (pbuh), according to a narrative of Abu commodities in line with the specified ones is not just
Huraira, had engaged a man as a labourer in his land at because of being consumable only, as some scholars
Khaiber. He came to him with excellent dates. So he hold, nor for being measurable or weighable alone, as
enquired: ‘Is every date of Khaiber like this?’ ‘No by others opined; rather, it is because the stated commodities
Allah’, the man replied, O Prophet! Verily we take one Sa' comprise the two characteristics of being consumable, on
of this for two Sa' and two Sa' for three’. He said: ‘Don't one hand and being weighable or measurable, on the
do it, sell the whole for cash and purchase the best dates other. On this Sa'id bn al-Musayyab said: “There is no
with cash’. He said: ‘In weight also like that” (Bukhari, interest except in gold and silver or in consumable things
Vol. 4, Hadith No. 2076). sold by weight and measured”. The same view has been
In actual sense, even dry output will not be sold in reported as one of the views adhered by Imam Shafi' and
exchange with the fresh, for it decreases when it dries up. Ahmad bn Hanbal and it was chosen by Ibn Taimiyyah
On this, Zaid Abu Ayyash reported that he asked Sa'ad and a host of other later jurists (Ibn Taimiyya, Al Fatawa,
bn Abi Waqqas: ‘Can we sell barley in exchange for salt?’ Vol. 29, pp 471-474).
Sa'ad replied: ‘Which is the better grain?’ He answered: Hence, it is clear that Islam has strongly blocked
any way that can lead people into Riba. Imam
Barley, He then prohibited him from doing so. Sa'ad Ibnu Kasir explains the reason why some agricultural
said: I heard the Apostle of Allah (pbuh), who asked transactions have been regarded as lawful in Islam.
people how it was to sell by dates in exchange with fresh He said: “The reason why Mukhabarah: taking a fixed
dates which decrease when they dry up. They said; ‘Yes’. amount of grain from the harvest of a land given on lease;
He prohibited the transaction”(Muwatta Malik, Vol. 2, p muzabanah: exchanging fruits on a tree for plucked fruits;
292). Muhaqalah: exchanging grain that is yet in the aero for
Four different types of food crops are categorically grain that has already been harvested; and the like, are
stated in an explicit legal text that they should not be sold, prohibited is to cut off the way of Riba. Because, before
each one in an inequality of weight of one sort of its it dries, no equality between the two could be recognized.
brand. The text reads: “Gold for gold, silver for silver, As a result of that the jurists say ignorance of similarity is
wheat for wheat, barley for barley, date for date, salt for like inequality between the two” [14].
salt and the like for like in hand to hand transaction. Who
so gives more or takes more and then the taker and the The Function of the State: It is stated in a popular
giver are equal in taking interest therein”(Bukhari, Vol.4, jurisprudential maxim that “Social interest has priority
Hadith No. 2128). over individual interest”. This principle has been the basis

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on which the early jurists depended for approving or regard to private commerce and industry, it is the duty
disapproving certain transactions, which are not of the State to have an elaborate and effective system
apparently mentioned in the available legal texts. It is still of Hisbah, i.e. on-the-spot checking of weights and
the maxim that has been referred to supportive of various measures, the quality of the commodities offered for
activities, especially those related to the public affairs. sale, proper gradation, honesty in dealings and the
Several transactions have been prohibited out right observance of modesty and courtesy in sales-manship
for being the means of circulating wealth in the hands of and in the general behavior of the people. Of course, the
a few well-off people. Such a thing is sturdily injurious to government has also the responsibility to break all that
the society from all aspects- economically, socially and can cheat like cartels, monopolies, hoarding and the
morally. Indeed, individuals -no matter how high in corner-market [16].
position or dignity - are not permitted to act in a way that This is very good explanation and must be taken into
could directly or indirectly encroach upon social interest. cognizance where the State should put its helping hand to
Rather the interest of both the individual and of the reduce difficulties in the agricultural sector. This could
society must be protected and done in harmony in order also be done by establishing agencies and boards which
to achieve mutual cooperation. would, in one way or the other, ease both the large and
The Prophet (pbuh) has firmly instructed this small scale producers by supplying to them major inputs
principle as saying: “There should be neither harming nor at subsidized prices. The areas where government also
reciprocating harm"[15]. And Imam al-Shatibi, one of the should come in include proving improved seeds, fertilizer,
eminent Maliki jurists, has a vivid and nice explanation cattle vaccination, cattle insertion, insecticides, farm
on public interest in relation to transactions. He said: chemicals and other important things, which the producer
“The general injury involved deserves the priority of cannot do without. By so doing, the government with its
consideration. The person seeking some advantage by ability to vouchsafe price support to the populace, has
protracted policy, or desirous of warding off some the right to decree whatever is possible, according to
impending loss through it, shall therefore be prohibited Islamic injunctions, to eradicate the activities of
from putting that policy into practice, because social profiteering, embezzlement, hoarding, avarice and all
interests have priority over individual interests. This similar anti-social methods of amassing wealth. If this is
Maxim is upheld by the Prophet's prohibition of implemented or granted for the masses, it would definitely
intercepting market supplies before they reached the bring peace and stability in the society.
marketplace and of the city-dweller acting as broker to the Taken all in all, the above stated maxims, of course,
country people. It is also supported by consensus of should be used as a doctrinal basis for the marketing of
Muslim opinion upon holding the craftsmen responsible agricultural produce. They definitely serve as good
for any damage suffered by the goods entrusted to them procedural principles regarding any transaction, even
by the public for repair or improvement. The companions though it is not akin to agriculture in particular.
enlarged the Prophet's mosque by including into it plots
of land belonging to others, whether they were willing to Price and Pricing Decisions: The price is the ‘cost of one
allow it or not. This is decisive in favour of social interest unit of a commodity’. This means that the amount of
as against individual interest, with the necessary money with which a commodity can be bought or sold is
condition that it should not involve any loss to the an estimation that determines the value of that particular
individual- (which is unbearable and irreparable) [6]. commodity [16].
In the light of the above mentioned principle, the Impliedly, the meaning of ‘Pricing’ can also be ‘the
State should interfere to safeguard the interest of both the act of establishing the price of a particular commodity by
public and the individual and ensure that every individual the seller, with or without the prior consent of the
lives up to the standard. buyer’. Thus, before any step is determined with regards
The pivotal role that the State should play is one of to the pricing decision, there should be some basis that
the three integrals on which the Islamic economic system paves the way for the decision. This is what is called “the
is built upon; thus, 1-faith and moral value, 2-principles of law of supply and demand”. This law is translated as
organization, 3- and the State. whenever the product is scare and frequently demanded
The responsibilities of the State were described by the price would definitely become high and when it
S.M. Yusuf, one of the Muslim economists. He said: “In becomes plentiful, its price is low.

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Evidently, this law reflects a correlation between the (pbuh) “Leave people alone so that Allah will give
suppliers who provide the commodity, on the one hand them provision from one another” (Muslim,Vol. 16,
and the consumer, on the other, who, in turn, uses the p 120).
supplied commodity to satisfy his needs. And naturally,
the former would gain profit from the purchase, while the The break even Method (Al-Tauliyah): This is where
latter would have to gain satisfaction in obtaining the the producer doesn’t aim at making either profit or
product mostly on cash or on barter basis. Therefore, the loss. He only wants to sell the product at the price he
law of supply and demand, in the end, entails bought the earlier or at the very price it cost to
exchanging commodities up to the ultimate consumer. produce.
Several factors can lead people to demand more Competitive Pricing (Al-Muwada’ah): This is where
commodities, like change in taste, or noticing some side the producer, after an estimation of the production
effects in certain commodities and many other needs that costs and other expenses, reduces some percentage
can add or reduce supply due to the degree of the from what he estimates and then sells the product at
responsiveness of the consumers. “Elastic” is the term the reduced price.
given by economists to any response to a change in price, Auction (Al-Muzayadaha): This is the sale to the
if the commodity is demanded in a large quantity. If the highest bid. Two buyers or more can make an offer to
reverse is the case, the demand is “Inelastic”. But, it has a product and ask for a bid for it, everyone makes a
to be borne in mind also that there is a natural fluctuation bid and at last the product shall be sold to the
of the market, where the price can rise up or fall down to highest bid. The basis of this method is from a hadith
the law. On this particular issue, Imam Abu Yusuf Said: reported by Anas that: “The Prophet (pbuh) sold a
“There is no limitation for the lower or higher price, for it saddle and a cup and said: ‘Who will purchase this
depends upon unpredictable circumstances. Abundance saddle and cup?’ A man replied, ‘I shall take them
of the food could not make it cheap nor could scarcity both for one dirham’. The Prophet said: ‘Who will
raise its price, it is absolutely destined from Allah. It might increase over one dirham?’ A man offered him two
be abundant, yet its price can be costly and it might be dirham. Then he sold them both to him”(Sunan Abu
scarce but cheap” [13]. Dawud, Vol.3, Hadith No. 3453).
Generally, after deciding the right price, the
agricultural product is to be sold through one of the It is crucial to note that not only houses and other
following pricing methods [17]: articles can be sold through this method, but nowadays
the prices of some agricultural products are determined by
Private Treaty pricing (Al-Musawamah): This is the auction, more especially the products that are sold on
most common pricing method. The price here is to be quality and grade like cotton, cattle, etc.
decided by bargaining between the buyer and the In view of the law of supply and demand discussed
seller, until they reach the optimum price, where the above, the market especially of agricultural produce is free
product can be sold. to determine the price that could be easier to the common
The Cost-plus pricing (Al-Murabahah): A producer people to obtain their basic necessities of life at a
here looks the at cost structure that involves looking reasonable price.
at the production costs (by which he provides Generally, Islam commands sellers and buyer also to
labour, seeds, fertilizers, insecticides and fuel, etc.), exercise kindness, tolerance and compassion in order to
distribution costs (by which he provides gain Allah’s mercy. The Prophet (pbuh) has asserted that
transportation, storage, etc.), the depreciation of noble morality as saying: “May Allah have mercy on a
machinery, equipment, farmstead and many other man of gentle dealings when he sells, when he purchases
things, which he would count for before taking a and when he gives decisions”(Bukhari, Vol. 4, Hadith
decision. After that, he estimates the cost of the No. 2167).
product per unit and then adds a certain percentage It is, of course, moral failure to decide too high a price
in order to provide a profit margin. above the capacity of the consumer or to hanker
frequently after it. For the sake of enjoining good and
The abovementioned two methods are clearly spreading benevolence in the society (Ihsan), an average
indicated, as the jurists hold, in the saying of the Prophet price should be decided for a commodity, as if the

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producer himself demands to be offered the same he could Weeding out Competition: This is another unfair
buy it at that price [18]. method where those having a sufficiently large
There are some producers who follow some wrong resourceful base that can enable them to withstand
methods in order to gain excessive profit or to have sole any competition in the market place, decide to cut
control over the supply of the commodity to enrich their prices down in order to drive smaller producers
themselves at the expense of others. This act is called out of the business. Obviously enough, this method
‘Imperfect Market’. Before we analyze some of its major is very dangerous to the entire economy and it will
aspects, we should look at a brief explanation of its instantly break the business of the smaller producers
opposite that is ‘Perfect Market’. and make large scale producers hanker for more. Such
The perfect market, as it can be discerned from method is categorically prohibited. The Prophet
Islamic marketing sources, must involve certain (pbuh) had said: “A Muslim is a brother to any other
conditions, which include [19]: Muslim, neither subjecting him to any tyranny nor
leaving him a prey to harm that happens to befall
Allowing unlimited number of buyers and sellers to him” (Muslim, Vol. 10, p 162 ).
enter the market.
Homogeneity of non-prohibited products. Monopsony (Talaqi-al-Jalab): This means
Free entry of other producers. intercepting market suppliers before reaching the
Prefect mobility of the factors of production. marketplace. In his deep desire to acquire money at
Full knowledge of the condition of the market. the expense of others, a monopsonist (one buyer)
And the market must entirely be regulated by Islamic could meet the bringers outside the town, at the
injunctions of Halal and Haram [20]. crossroads or somewhere else, when they arrive near
the station and purchase all or a large volume of the
If these conditions are complete, the pricing methods commodities. Such practice has been strongly
discussed above will work perfectly and serious prohibited in several hadiths. It is reported that:
complaints will not be raised. But if one condition or more “Don’t intercept corn merchants ahead. Who so
are breached, the market definitely will never be perfect, meets him ahead and then purchases from him, when
so imperfectness arises from there. Thus, it can be by its owner comes to market, (he) has got an option”
creating artificial scarcity of a commodity, or the buyer (Muslim, Vol. 10, p 164).
may be misled in order not to go a seller charging the
lowest price and so on. Abdullahi bn Umar is reported as saying: “We used
There are a lot of wrong pricing methods that form to go out to welcome those people who brought grain
what is known as “Imperfect Market”. The following is a from outside and purchase it from them. The Prophet
brief description of some of them: forbids us not to buy until it was brought in the market”
(Vol. 4, p 429, No. 2240) [3]. The Prophet had ‘issued these
Penetrating Pricing: This is the case in which the instructions with regard to the purchase of grain, which
producer decides deliberately to set the price was essential commodity and was required by all, the rich
lower than necessary in order to attract initial as well as the poor, in order that it should be sold in the
consumers, with the hope that they will become his open market. It was also to prevent the capitalists buying
permanent customers. Such pricing would not be the entire stock of grain before it came into the market
appreciated, especially when those who cut the price thereby thus, by becoming its sole supplier, thus enabling
lower have no majority over the others. As a result of them to control the price’.
that, they should be compelled by the State to We must note that under normal circumstances of
increase the price to reach the level at which other the law of supply and demand, when the market is
producers are selling the product as well. A typical perfect, the rise and fall of prices is not a matter of much
example is what happened in reign of ‘Umar bn consideration and there is no need to call upon the state
Khattab (R.A). He passed by Hatib bn Abi Balta’a to intervene in order to decree a price control. Situations
who was selling at a lower price. Umar told him: like that had happened during the time of the Prophet
“Either enhance your rate or leave our market” (pbuh) and he did not decree anything. Anas bn
(Muwatta Malik, Vol.2, p 536). Malik reports that:

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“The correct price became dear at the time of the Prophet expression: “He who accumulates stocks of grain during
(pbuh). They asked: ‘O Messenger of Allah! Fix a rate shortages of it, is a great sinner” (Muslim, Vol. 11, p 43).
(price) for us’. He replied: ‘Verily, Allah is one who It should be noted that the term ‘sinner’, is not to be
controls price, who withholds, who gives lavishly and taken lightly [22]. It has the same empathic Allah has
who provides and I hope that I should meet him while applied to some of the great tyrants in history, for
there will be none among you who will have a claim example: “Assuredly Pharaoh and Haman and their hosts
against me for any injustice with regard to blood or were sinners” (Q 28:8).
property”(Sunan Abu Dawud, Vol 2, Haqdith No. 16433). Essentially, the term ‘hoarding’ must be understood
It is interesting to note that Imam Shafi’i opined that in a wide and general sense and not in a narrow one as
this hadith has strongly blocked any way that leads to some of the jurists hold, that is, to confine its meaning
price controls. No product’s price should be fixed by the within the scope of hoarding of cereals and the like.
State and it has no right totally to intervene in the Imam Ahmad bn Hanbal was asked about hoarding
people’s right; to sell or not is their own business [21]. (Hukrah). He replied: “It is confined to all that people
But the other scholars, especially of the Maliki and use as food” [23]. But according to the view of other
Hanbali Schools of Law are of the opinion that what had scholars, the term must be taken in a wider sense.
happened in the stated hadith should not be taken as a Imam Abu Yusuf from the Hanafi School and some Maliki
“general rule”, rather it should be related to the law of jurists supported this view, holding that everything,
“specific incidence” (Waqi’at al-‘ain), i.e. an exceptional withholding of which is harmful to people, comes within
incidence that should be referred to when the scarcity the meaning of hoarding, even if it be gold, silver or cloth
naturally prevails. But when the case is not like that, more [24].
especially in the case of artificial imperfectness, like Sheikh Subki, one noble Shifi’ate scholars, has taken
penetrating pricing and monopsony, etc., here the state the scope of hoarding in its widest meaning. And he said
should intervene to stabilize the situation by guaranteeing that: “If hoarding occurs in a state of drought and it
a standard price for the betterment of both the seller and happened that some of the commodities like honey,
the buyer. cooking, oil, sesame-oil and the like are hoarded to the
The State can arrange supplies to ease things for the extent that it caused harm to the society, that should be
people. ‘Umar bn Khattab did the same to relieve the declared as hoarding, which is categorically unlawful. But
distress caused by the soaring price of food in Medina; if it doesn’t cause any harm, the hoarding of cereals at
he brought in supplies from Egypt and Syria and the price any time is still undesirable”[25].
went down the natural way’[16]. There are two basic conditions [26], however, which
should be borne in mind before declaring storing a
Hoarding (Al Ihtikar): Is one of the prohibited price commodity as hoarding. First, if the commodity is bought
policies in Islam for its harmfulness on the entire from producers with the intention of manipulating and
society and as such it is definitely detrimental to creating artificial scarcity and not bringing it to the market.
other producers. A number of eminent scholars view this condition
essential, among them were Imam Abu Hanifa, Malik, Al-
To begin with the term, ‘hoarding’ means “to Auza’i and Abu Yusuf. And the same was reported from
withhold cereals or other articles of use in order to raise Umar bn Khattab. He was reported to have said: “Nobody
their prices artificially”[1]. This habit is emphatically should hoard grain in our market. People who have more
condemned in both the Qur’an and Sunna. Allah money than they need should not buy corn that comes to
announces a grievous chastisement for hoarders. He our country for stoking and selling at higher rates.
says: “And there are those who hoard gold and silver and Persons who endure the trouble to bring grain to us in
spend it not in Allah’s way announce unto them a more winter and summer shall be the guests of ‘Umar.’ If God
grievous penalty”(Q: 9: 43). wills, they sell or if God wills they may stock them”
The practice of hoarding is also strictly forbidden by (Muwatta Malik, Vol. 2, p 298).
the Prophet (pbuh) as he said: “One who hoards with a The second condition is to fix the maximum price for
view to making things dearer for Muslims is a wrongdoer the hoarded products at the expense of the society. This
and Allah would not give him any protection”( Mustadrak condition is also essential and has two dimensions. One
Hakim, Vol.2, p 134). He also said in a more clear is hoarding when the products are abundant and people

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are not in serious demand of the commodity. Two is balance, that mankind may abide by justice” (Q 57:25). “It
hoarding during hardship; people are suffering from a is Allah who has sent down the Book in truth and the
severe shortage of food or that commodity in particular. Balance” (Q 42:17). Prophet Shu’aib was among the
Some scholars are of the opinion that there is no prophets those who made rigorous preaching on this
much harm in such hoarding provided the commodity is matter. He said to his people: “Clear proof indeed has
plenty and cheap when hoarded. And the product must come to you from your Lord, so give full measure and just
have been hoarded with the intention to provide it weight and withhold not from the people the things that
plentifully when people turn in desperate need to it. are their due. And do no mischief on the earth after it has
Lastly, it must also be made available at an average price. been set in order” (Q 7: 85). “Give just measure and be not
This, as Sheikh al-Subki viewed and remarked: “Is not defrauders. And weight with an equal balance. And do
mischief, rather it is desirable” [25]. And Imam Ibn Hazm not diminish people’s good nor do evil on the earth,
has categorically emphasized reserving products with this acting corruptly” (Q 26: 181-183).
intention, saying that [27]: “The hoarder, during the According to Imam Mujahid bn Jabr: “The ‘Balance’
availability of the commodity, is not a sinner, but a well- here is quite an indication to the scale, which people use
doer, because if commodities are rapidly sold out, the in their transactions”. While most of the scholars hold it
supply itself will increase. But when the commodities to mean establishing justice. Both interpretations, as Ibn
become dull and they don’t get buyers they will definitely Taimiyya remarked, are in conformity with the golden
stop supplying. So, Muslims consequently will be badly mean of the Shari’a [28].
affected. Allah has said: ‘Help one another unto The Prophet (pbuh), in accordance with such
righteousness and pious duty. Help not one another unto directives of the Qur’an, has spoken strongly against
sin and transgression’ ” (Q 5:2). such fraudulent practices. Ibn Abbas said to the owners
It is worth noting that the State will play a vital role in of measurement and weight: You have been certainly
rescuing people from the oppression of hoarders and entrusted with two affairs about which the former nations
monopolists. This could be done through enacting laws before you were destroyed” (Sunan al Tirmidhi, Vol. 3,
to compel hoarders to bring hoarded commodities to the Hadith No. 1217). Miqdam bn Ma’di also reported that:
market and sell them at an average price. Anyone found “The Prophet told them to weigh their weight for there
breaching such law and order must be punished by heavy was blessing for them in it” (Bukhari, Vol. 3, Hadith No.
penalties in accordance with the provided law of 3443). Uthman bn Affan also reported that: “The Prophet
Ta’adhir. told him always to weigh and measure anything he
bought or sold” (Bukhari, Vol. 4, p 451).
Weights and Measure: Islam has taken great care to Based on the rule of custom, the State has the right
prevent the occurrence of defects and fraudulent behavior to fix up, in the general use, a standard measurement, for
in marketing. The seller should not cheat the buyer, nor which commodities will be measured and weighed in
the buyer too. A number of verses and hadiths have selling or buying.
called upon the attention of producers to set their One mordious, (Mudd), used at the time of the
commodities in a well measurable manner. Prophet (pbuh), is now equivalent to 510 grams. And four
Establishing and using an excellent measure and a mudds make one sa’. The sa’ itself is equivalent to 2040
just balance are strongly recommended. This was grams [29]. Despite the fact that Muslims are urged to
included among the ten obligations described in surah Al- make some advancement in order to meet the need and
An’am, in which Allah said: “And use a full measure and eventuality of their time, nevertheless, using such mudd
a just balance. We will not impose a task on any soul and sa’ is recommended, more especially with regards to
beyond its ability” (Q 6:152). He also said: “And give full agricultural produce being subject to Zakkat and expiation
measure when you measure and weight with the straight (Kaffarah), but is not compulsory.
balance; this will be better and best in the final Apart from mudd and sa’, there is no fixed
determination” (Q 17: 35). measurement to be used, unless what the State has
This rule was one of the pillars on which all the recommended for her people. This includes all that is to be
Prophets had preached to their people. The Qur’an used in wrapping and packaging the commodities. It can
proclaimed that: “We verily sent our messengers with be sacks, plastic bags, bales and various things that may
clear proofs and revealed with them the scripture and the be used to measure or weigh the products.

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The State should strictly supervise markets to ensure assets left by the deceased and the commodity will be
that proper measurements are used accordingly. In the fully brought to the inheritors.
early days of Islam, Caliph Uthman and Aliyu bn Abi In fact, the Salam is full of controversial and delicate
Talib were most particular about it. It was reported that cases, which are expounded at length in jurisprudential
during the regime of Ali bn Abi Talib, he used to go round books; here space does not permit to give a complete
the market of Kufah with a whip, to ensure using the exposition. But, generally, apart from the hadith
proper weights and measures and ascertain justice [30]. mentioned above, the Salam is jurisprudentially linked
with the principle of custom, which governs and regulates
Future Trading (Payment in Advance): This kind of majority of its cases [31].
trading is also called Salam or Salaf accordingly.
Technically, it means a contract of sale, causing an Promotion: Before distributing any agricultural product,
immediate payment of the price, admitting a delay of the a producer might have to introduce his product to the
delivery of the commodities. In short, it is called an consumers and give information about its form, value and
advance payment for future commodities. quality and expose most of its general attracting features.
Such a transaction is validated by consensus of the This activity is known as ‘Promotion’. Despite the
Jurists [9], for it had been in use during the time of the different kinds of promotional approaches/activities, the
Prophet (pbuh) and he justified it with the introduction of most important among them is ‘Advertising’, which we
certain changes and putting some conditions. Ibn Abbas tackle below.
reported that: “When the Prophet (pbuh) came to Madina, Advertisement is of two distinguishable types, one
they were paying one and two years in advance for fruits, is called ‘Informative advertising’. This simply includes
but he then said: those who pay for anything in advance communicating information about the product; its
must do so for a specified measure and weight, with the availability and accessibility and other necessary
fixing of a specified time” (Bukhari, Vol. 4, Hadith information. This is to be done, according to the Islamic
No. 2110). precepts, without encroaching upon the integrity of the
The hadith is clear about the permissibility of such other producers, even if they, at their own side, are
transactions if certain specifications are adequately exaggerating the utility of their products.
provided. It includes the period of delivery, species, The second type is called ‘Persuasive Advertising’.
quality, volume and other peculiarities, which must have It is where the producer exaggerates the information about
been determined properly from the start. the utility, duration and other features of his product, as
At this point, a farmer or a dealer could make a superior and having more useful features than the others.
contract of one or more commodities, which he will later The reason for doing so is to impress buyers to buy more
bring to the buyer after some months, or two to three and maybe rule out other producers from the market. This,
years. Of this permission, the vegetable shops, indeed, though it would give the producer advantage of
restaurants, industries and all those who are in need of accumulating a higher price, still it is prohibited.
certain agricultural products can purchase in advance for Tarnishing others’ image is forbidden in the Prophet’s
certain commodities and receive them it in due time. saying: “Verily! Your blood, property and honor are
Salam, of course, is not meant to certify manipulation or sacred to one another” (Bukhari, Vol. 4, Hadith No. 2148).
to make one of the buyers a sole buyer at the expense of The prohibition is, of course, due to the involvement of
others; rather it is a sort of financial assistance to the false practices and filthy descriptions of other products.
producer, enabling him to prepare the product for the Such an advertisement is disregarded even in non-Islamic
buyer. marketing-systems for being a false advertising policy
At the case of seasonal produce, if the seller couldn’t [32].
deliver the commodities until its time is over, a multitude Among such mischievous policies is where some
scholars have agreed that the buyer has the choice either producers engage in falsely swearing frequently in
to collect his money immediately or to leave it till another order to make their product acceptable. But Islam
season (Ibn Taimiyya, Al Fatawa, Vol. 29, pp: 505, 518- totally discourages making sales by false swearing.
519). Abu Huraira (R.A) reported that the Prophet (pbuh)
Similarly, if the seller died while the time of delivery is had said: “The swearing (by the seller) may persuade
not come yet, the producer receives his money from the the buyer to purchase the goods, but that will be

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deprived of Allah's blessing” (Bukhari, vol. 4, Hadith No. Assembling: Means collecting the product in large
2175). amounts to attract the attention of buyers.
Exaggerating, in whatever form it occurs, is Grading: It means arranging the product according to
wrongdoing, for it’s a kind of fraud, which the Prophet its different qualities, each one of the grades suggest
said “Leads to hell.” So, the producer would be careful a different price. Cattle, for example, are sold
not to perform such deceitful policies [19]. according to the categories such as: 1- Prime, 2-
Abdullah bn Abu Aufa reported that: “A man Choice, 3-Goodness, 4-its Standard and so on. Wheat
brought some goods for sale in the market and took an is sold according to grades or numbers, e.g. grade 1,
oath that he was getting so much price for it though he 2 or no. 3. And this can be applied in selling dates
was not getting the price. He said this merely to trap and cotton, etc.
someone to buy his goods, on this occasion the following Processing: is putting the row of agricultural produce
verse of the Holy Qur’an was revealed: “Those who take in another form and not the original for various
a small price for the covenant of God and their own oaths- purposes, including preservation, the requirements of
they have no portion in the Hereafter” (Q 3:76). This is quality control and keeping its mechanical and
because the false swearing “is probably done to deceive chemical consistence. Most products are processed
people and because it reduces respect for the name of before consumption. For example, maize is pounded
Allah” [22]. or milled before use for human food or livestock feed.
It is surely known that economists condemn It is obvious that the processed product costs more
competitive (persuasive) advertising, partly because of than the raw one.
the wasteful employment of the factors of production and Packaging: Some products require to be packed for
advertising when they might have been used in some easier handling, like eggs. And some require being
other form of production and partly because this kind of compact, like cotton, by processing them into bales.
advertising only increases the cost of production. Packaging also helps to protect the produce from
Therefore, a Muslim producer is discouraged to damage like potatoes, which could be packed in
engage in wrong advertisement. He should have to live sacks or in transparent plastic bags, etc. Packaging,
according to the Shari’a and consequently must show in general, helps even in proving more storage
how mutually he cooperates with his co-producers. The spaces and helps in reducing transportation costs
Prophet (pbuh) was reported to have said: “A Muslim is and undoubtedly keeps the produce neat.
a brother to another Muslim, neither subjecting to any Warehousing: Is the storage of commodities, for
tyranny nor leaving him a prey to harm that happens to example, bins, grain and silos, all can be put in a
befall him” (Sunan Abu Dawud, Hadith No. 3443). refrigerator or any drying container. It may be
To sum up, Islam encourages producers to advertise necessary to have either by the producer himself or
their products and make it known to the public via the by a marketing body, in order to overcome the
general media like the TV, radio, newspapers, internet, problem of seasonal perishable products which are,
posters, bill boards, etc. It can also be promoted through naturally, in constant demand throughout the year.
any farming press, sales literature, agricultural shows and Providing protective chemical for safety of the
trade fairs. Abu Huraira reports the Prophet said that: product is also necessary. In general, the ability of
“Both the buyer and the seller are at liberty to cancel the good storage may enable the producer to maintain
transaction until they depart from one another. If they act the quality of his product at a steady pace
honestly and truthfully their transaction will bring them throughout.
good. If they cancel and tell lies the good of the contract Transportation: It means getting the commodities to
is thereupon destroyed” (Bukhari, Vol. 1, Hadith No. 67). the marketplace until it reaches the final consumer.
Several forms of transportation facilities with special
The Distribution of Agricultural Products: Distribution devices are needed for a number of purposes, more
is among the essential functions of the marketing mix; especially for the bulk handling of products.
it is sometimes called ‘Place’. It is simply defined as the
moving of finished products from the end of a production These services, indeed, are very important and Islam
line to customers. This encompasses the following as the has no objection to any means that facilitates better life
‘Distribution Channel’: to the people. Distribution, indeed, makes possible safe

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arrival of the product to their destination with little attention to the rules and regulations governing the
damage and also helps in the reduction of levies for market.
heavier loadings. And it is clear that through careful Apart from this, most of the middlemen have the
handling of the commodities, the producer can safely habit of buying the commodities which are meant to be
move his commodity from the production line up to its last distributed instantly and hoard them until hardship
consumers without even touching them by his own hand. time. This wrongdoing stands for double offences. One
is manipulating the trusted commodity to be sold to the
The Marketing Channel: The simplest marketing channel populace and two, hoarding what people are in earnest
is where the buyers go directly to the producers and demand for.
purchase their wish. Such agricultural products, which As for manipulation, it was matter of consensus
could be bought directly without the need of an agent among the Jurists that any contract which involves
include fruits, vegetables, eggs and the like. In a long run manipulation is invalid, or “Batil”, to use Ibn al-
channel, the produce only reaches final the consumer Mundhir’s word [41]. Likewise hoarding, its unlawfulness
through middleman. A middleman, in the production also is very obvious in Islam.
cycle, is the one who stands between two main points, the In a number of hadiths, the Prophet (Pbuh) urged
buyer and the seller. Muslims not to undertake such ill practices in their
There are, however, different types of middlemen agencies. Ibn Abbas (R.A) reported that the Prophet
taking care of different types of trade and commodities. (pbuh) said: “No townsman should sell (as an agent) for
Since we are more concerned with agricultural produce, the villager”. Ibn Abbas was asked by his disciple Ta’us:
we should confine our discussion to the two main What did this mean? He replied: ‘It means that no one
channels, namely, the ‘retailer’ and the ‘wholesaler’. should become his commission agent”(Bukhari, Vol. 4,
As for the retailer, his main function is to sell to the Hadith No. 2089).
final consumer smaller quantities of the commodity. The hadith clearly encourages diminishing the power
He also sells the commodity required in any and number of middlemen. Though it is not a clear-cut
prescribed form and brings it to both the place and prohibition for establishing such agencies. The role of
in the quantity desired. By doing this, the retailer usually middlemen in marketing the commodities is still very
receives his quota and commissions either from the important. In the conventional marketing system, the
producer directly or from the wholesaler, who is following are some of the prominent functions of
sometimes called ‘factor’. This brings us to the function middlemen:
of factor.
The factor or wholesaler, in his turn, is the one who Breaking of bulk: carrying a large quantity and selling
stands in the place of the primary producer. He agrees to it in small quantities to retailers.
take over some of the rights and responsibility of the Advertisement of products to encourage many sales.
product’s owner. Hence, the factor is to act on behalf of Cost reduction: Elimination of middlemen merely
the real owner and to be paid on the commission rate for means that either the producer or the retailer must
his intervention. take over their functions, which financially will cost
The commission rate is the amount to be paid to the a lot.
factor or broker, depending on the value of the The middleman sometimes advises both the retailer
transaction he makes. Such commission is allowed in and the producer.
Islam provided it runs on agreed conditions and mutual
consent between the parties. Lack of these conditions But their functions can still be justified, from Islamic
would break its validity. point of view, from three reasons:
The factors are prohibited to observe anything One, he could give advice to both the seller and the
that can cheat the producer like stopping one’s retailer, without taking anything or desire to be given.
commodities out of the market if he is not in good terms Talha bn Ubaidullah acted as a consultant to one of the
with them. This is haram, for they have no right of sellers, who, from his part, wished Talha to be his broker.
ownership; the very basis upon which the rights of But Talha told him that the Prophet (pbuh) has prohibited
abolishing or completing the contract are established. the townsman to sell for the outsider’. Then he withdrew
Instead, they can advise the producer by calling their his attention. And Talha told him that: he should go to the

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market if he got a buyer, he could then ask Talha for for the sake of buying and selling, on the basis that they
appropriate advice ! (Sunan Abu Dawud, Vol. 4, Hadith should be remunerated wages for daily or monthly or
No. 4895). whatsoever agreement they mutually concluded. For this
This was viewed by Imam al-Bukhari, Ibn Hazm and reason, the middleman is to take a fixed wage in spite of
a host of other jurists. They rightly opined that the the loss or profit of his master [33].
invalidity of such interference is confined to one who These are the only means through which the
undertakes it for the sake of his own profit only, but when middlemen can perform their activities in conformity with
it turns to the case of advice, he could be sincerely the Islamic injunctions, otherwise they will act in vain.
advised. The Prophet (pbuh) was reported to have said:
‘The essence of religion is sincerity’. Asked sincerity to CONCLUSION
whom? He replied: To Allah and his Book, His Prophets,
the sincerity of Muslims and its rulers”. And he said: The article highlights a number of significant issues.
‘Leave people alone, so that Allah will give them The introductory part deals with the importance of the
provision from one another. If somebody seeks your agricultural sector and the Islamic point of view on the
advice, advise him”(Muslim, 14, p 164). right of ownership. While the main body tackles the
Two, the function of a middleman could be seen definition of marketing through which the basic
clearly in ‘Mudaraba’, which is an arrangement in which principles governing the marketing of agricultural
an investor or a group of investors entrusts capital to an produce in Islam are boldly discussed. The other part
agent or manager, who is to trade with it and then return of the article examines acutely the functions of
to the investor the principal amount together with the ‘marketing mix’, abbreviated as 4Ps; which are Product,
agreed share of the profit. The agent receives the Place, Price and Promotion. Different types of pricing
remaining share of the profit as a reward for his labour. approved in Islam are among the issues discussed.
Being an investor (Mudarib), the producer himself or Likewise, the distribution of the products and marketing
even the retailer can make an arrangement with an agent channels which the product passes through up to the
to sell or to buy for them in accordance with the ultimate consumer are all summarily treated. Of course,
Mudaraba regulations. And he should receive a share the importance of weight and measurement in agricultural
from the profits, according to the arrangement they made. products is very important. It, undoubtedly, needs a
This view was chosen by Imam Ahmad, Ishaq bn strong regulation for assuring justice and for the
Rahuyah and others [33]. benefit of the people. For this reason, it is considerably
Imam Bukhari stated in his Sahih that: “Ibn Sirin, Ata, touched upon. Conclusively, it would good for the
Ibrahim al Nakha’i and Hassan al Basari saw nothing producer to adopt new techniques that can help his
wrong with commission charged by the brokers”. Ibn farm/industry grow immensely from small scale something
Abbas said: “There is no harm if one person says to to larger, as the Muslim is encouraged to achieve his goal
another, Sell this robe and if you sell it for more than such of earning halal and disseminate goodness to other
and such price the excess is yours”. Ibn Sirin said: ‘there beings.
is nothing wrong if one commands another to sell it for
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