Muslim

Hadith Commentary:
Vocabulary of the Hadith:
Ihtikar (hoarding) is derived from hakara,
which means to collect,
to withhold,
therefore, hikrah means
to withhold or collect something in order to sell it at a higher price.

Benefits and Issues:
According to the four Imams (a’immah arba‘ah),
hoarding food items
with the intention of selling them at a higher price
is impermissible (najā’iz).
As for hoarding items other than food,
it is not impermissible.
And both Mu‘ammar and Sa‘id
used to store olive oil.
Imam Ibn Qudamah al-Hanbali has mentioned three conditions for impermissible hoarding:

(1)
The item must be purchased from the market and then hoarded;
stockpiling produce from one’s own field is not considered hoarding.

(2)
The item hoarded should be something used for food;
therefore,
curry,
honey,
halwa (sweetmeat),
olive oil, and animal fodder are not included in this.

(3)
There must be complete control over the item,
it should not be available in the market,
and people should be in need of it.
If the item is available in the market, then this is not considered hoarding.

Explanation:
1:
Ihtikar:
Ihtikar refers to hoarding.
It is prohibited when people are in need of grain, and, in anticipation of further price increases, it is withheld from the market.
If grain is available in the market, then hoarding is not prohibited.
There is no harm in hoarding unnecessary items other than food.

Benefits and Issues:
All such items upon which humans or their animals depend for sustenance, and which are kept by someone for the purpose of sale, and then if these items become scarce in the market, and he withholds them with the intention that their price will increase further and then I will sell them—this is hoarding (ihtikar), the prohibition of which has been mentioned. If that item is available in the market according to demand, or someone has kept it for his own need, then withholding it is not the prohibited hoarding. Withholding during times of scarcity and famine is forbidden (haram). The practice of Sayyiduna Sa‘id ibn al-Musayyib and Hazrat Ma‘mar was also in accordance with this second situation. Some of the esteemed Imams consider it permissible to withhold fruits and other items besides staple foods.

Benefits and Issues:

➊
The meaning of hoarding (ikhtikar) is that when the public is in greater need of something, the trader withholds his goods at that time so that the price increases even more.
This involves greed and selfishness.
Such a person harbors the desire that the public should be afflicted with hardship so that he can accumulate wealth.
Such desires are not befitting the dignity of a Muslim.

➋
Hoarding is legally (shar'an) prohibited, and by committing a prohibited act, unlawful (haram) earnings become mixed into one's sustenance.

➌
The use of the word "sinner" (gunahgar) indicates that only someone who has become accustomed to sins can commit such a wrongful act.
Someone who only occasionally commits a sinful act cannot commit such a major crime.

➍
Purchasing and keeping a reasonable amount of goods for one's personal needs is not included in hoarding. For example:
If a person buys grain during the harvest season according to the needs of his household for the entire year, he is not a criminal.