The All India Fair Price Shop Dealers' Federation said it would close down various rations shops across the country for one day on December 11, which would have an adverse impact on farmers.
The Federation has written to Union Minister K V Thomas intimating him about their intention to go on strike.
"We demand immediate withdrawal of Cash Transfer scheme. This scheme will not only ruin ration shops across the country but will completely destroy the public distribution system of the country.
"They (government) should strengthen the existing public distribution system across the country so that each and every member of BPL and APL families gets food to eat," general secretary of the Federation, Biswambhar Basu, said.
The government proposes to roll-out the Aadhaar-enabled cash transfer for 29 schemes from January 1 in 51 districts, spread over 16 states.
It also plans to cover the entire nation by the end of December 2013. Later, cash transfer would cover 42 welfare schemes.