The Fair Price shop owners, under the banner of Punjab Depot Holders Union (PDHU), said it would not be feasible to run their operations if not paid adequately by the Centre.
"We have decided not to distribute ration under the Centre's Food Security Programme till we get our dues," PDHU president Gurjinder Singh Sidhu said.
"We have estimated that we will have to bear an additional expenditure of Rs 20,000 per month for administrative expenses including ship rent, salary and transportation cost," he said.
The Punjab government had earlier demanded the Centre for a sum of Rs 11,800 per for each Fair Price shop owner for the implementation of the Food Security Programme.