Shallot Market Mechanism in Nganjuk Regency, East Java: An Analysis from Ibn Taymiyyah’s Perspective

Abstract

Shallots are a common ingredient in food, but their prices fluctuate frequently. This phenomenon is driven by supply and demand. We aimed to examine this phenomenon in Probolinggo Regency from Ibn Taymiyyah's perspective, as it is the second-largest food production site in East Java. Our research method was a qualitative case study, with primary and secondary data sources. Our data collection techniques included in-depth interviews, participant observation, and documentation. Data analysis utilized data reduction, data presentation, and conclusion drawing. Our research findings indicate that the shallot market mechanism in Probolinggo Regency is generally aligned with Ibn Taymiyyah's Islamic market principles: prices are naturally formed by supply and demand (sunatullah). Under normal conditions, the market is free from ihtikar (stakes made in the name of perishable commodities) and price fixing, reflecting fair prices (thaman al-mithl), while price intervention (tas'ir) is prohibited due to its distortion. However, during crop failures, seasonal fluctuations, or artificial scarcity by wholesalers, the market fails to achieve fairness. Under these conditions, Ibn Taymiyyah requires the government to undertake countercyclical intervention. The ideal intervention is not a rigid HET, but rather asymmetric flexibility: a dynamic reference price (floor-ceiling price) accompanied by structural logistics interventions such as transportation subsidies and market operations, to stabilize consumer prices without harming farmers' fair margins.