Rai, a senior face in the AAP government, said shortage of short change currency and dip in sales have triggered the situation as most of these labourers deal in cash.
In a letter, Rai urged the Prime Minister to take urgent steps to alleviate their woes or roll back the decision to demonetise Rs 500 and Rs 1000 notes.
"The worst affected are daily wage labourers. Usually, they are paid in cash by traders. Due to lack of cash and dip in sales, these labourers and their families have reached a situation of starvation.
AAP chief and Delhi Chief Minister Arvind Kejriwal yesterday demanded that demonetisation has to be rolled back within three-days.