Step 1: Understanding the Concept:
Ergot alkaloids produced by fungal sclerotia in infected cereals cause severe human and animal toxicoses upon ingestion.
Step 2: Detailed Explanation:
Claviceps purpurea (an Ascomycete fungus) infects rye, wheat, and pearl millet florets, replacing grain ovaries with dark, hard sclerotia (ergot bodies).
These sclerotia contain toxic indole alkaloids (ergotamine, ergometrine) that induce peripheral vasoconstriction and endothelial damage in humans, causing severe gangrene in digits and extremities (gangrenous ergotism, historically termed 'Holy Fire' or 'St. Anthony's Fire').
Step 3: Final Answer:
Hence, Claviceps purpurea causes gangrene in humans.