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Trade and Business

Dairy Farm Agreement


Assalamu Alaikum Wa Rahmathullahi Wa Barakathuhu

Sir, I am doing business in milk and I have a shop. There is a principle in this field that when we take delivery of milk from the dairy farm it is necessary to have an agreement for one year. We are requested to deposit an advance with the dairy farm which remains with them. At the maturity of the agreement the advance is returned, and in whole of Karachi there won’t be any dairy farm who do not request to deposit an advance. Whatever is done, milk will not be available without advance payment. And I came to know that it is Haram? Sir please guide me in this regard since agreement is done during the 10th month and only a few more days are remaining.

الجواب حامدا و مصلیا

In the name of Allah, The Beneficent, The Merciful.
If dues are deducted from the deposit which is kept as advance on monthly basis or if it is just kept as a security deposit on the basis that whatever dues remain unsettled at the end of the agreement will be recovered, then there is no harm in the mentioned agreement.

And Allah knows best.
Qasim Ali