Ruling of Selling by Credit without Setting The Price
Assalamu’alaikum. Ustadz, in my village, there’s a practice of rice trading in which the farmer sells his rice with due time system, that is, the buyer/collector will pay its price after a year, with the highest price of rice at that time. Thus for example, the crop in January 2014 was immediately sold, but the payment will be received on December 2014 with the price that is determined by the seller, according to the highest price of rice in 2014. The farmers are delighted with this practice since they are not having trouble to stock their rice anymore. And the buyers are happy because they get additional capital to turnover for a year.
What is the ruling of this system, is it allowed or not?
May Allah reward you greatly, wassalam.
From: Abu Hamza