Paying Zakaat In The Form Of Merchandise

It is permissible to pay the value of a person's Zakaat in the form of merchandise or commodities such as clothes, cloth, rice, flour, lentils, sugar, oil, medicines, etc. It is stated in Fataawa Shaami:

And in Bahaar e Shariat it is stated as follows: “In place of money, if one gave food, grain or clothing etc. to a Faqeer (Zakaat recipient), and in doing so he made him the Malik (owner) of it, the Zakaat will be fulfilled. However, its Zakaat must be based on the price or value of that item which is the current market rate. Additional costs, such as the amount which was paid to a labourer to carry it from the marketplace, or if he brought it in from the village, then the transportation costs and levies etc. should not be deducted. Alternatively, if the item was cooked and

given, then the price of cooking and the wood etc. (used for cooking) should not be deducted. It will be calculated based on what that cooked item costs in the market.” (Durr-e-Mukhtar, Alamgiri, vol.1 pg.179 with Ref to Bahaar e Shariat volume 5, Page number 43 - Qadri Kitaab Ghar Bareilly Shareef) For more details on this issue, read Fataawa, Razviyyah Shareef, (new addition) Volume 10, Pages 69 to 74. However, it is better to give the monetary value of his Zakaat to the deserving so that he can buy the necessities according to his need. It is stated in Fataawa Hindiyah:

Translation: To accord (give) the monetary value is more commendable and excellent in comparison to according anything apart from it, to a needy person. There is a Fatwa based on this. (Fataawa Hindiyah Vol.1, Page number. 211 - Book of Zakaat - Chapter of Sadaqatul-Fitr). Fataawa Shaami states:

Translation: It is permissible to pay the value of Zakaat, Ushr, Kharaaj, Sadaqatul-Fitr, Nazar and Kaffarah in cash (money) or in any other form equivalent to the value. (Fataawa Shaami Volume 3, page number 566 Chapter of Zakaat - Zia-ul-Quran Publications Lahore)