The government lost another important ally - the Trinamool Congress party of West Bengal - last September.
Some of the Congress party's own allies Trinamool Congress party and Dravida Munnetra Kazhagam also vowed to prevent any legislative work until the decision was suspended.
Adhikari belongs to the Mamata Banerjee-led All India Trinamool Congress party (TMC) and was the party's spearhead in the Nandigram campaign against forcible acquisition of agricultural land by the state.
Critics, including one key Congress ally Mamata Banerjee of the Trinamool Congress party say those multinational firms would put out of business millions of small-time shopkeepers, who account for more than 90% of retail revenues.
The government lost another important ally - the Trinamool Congress party of West Bengal - last September which pulled out over the government's plan to open the retail sector to global supermarket chains and other reforms.
"We are totally in favor of a strong bill but the federal government should also take the views of states as they are the ones who would implement it, " Trinamool Congress Party member Sudip Bandopadhya said.
West Bengal Chief Minister Mamata Banerjee, who is leader of the Trinamool Congress party, another major Congress ally, is also against the decision to open up India's retail sector but whether her party would help defeat the government remains unclear.
On Wednesday, Mr. Singh and Congress party president, Sonia Gandhi, held discussions with senior party leaders and two key coalition allies the Dravida Munnetra Kazhagam party and Trinamool Congress to try to shore up support.
The decision was also welcomed by the Trinamool Congress, a West Bengal-based party that contributes 19 votes to the ruling coalition in New Delhi.
Many potential BJP allies (such as the Trinamool Congress in West Bengal and Telugu Desam Party in Andhra Pradesh) will be wary of alienating Muslim voters by cohabiting with him.
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Some worry that her relations with Congress have become so dire that her own Trinamool party may leave the coalition.
The rabble-rousing street-fighting Trinamool Congress leader is poised to near-singlehandedly unseat the party which has ruled West Bengal state for 34 years without a break.
This and another decision to increase the subsidized price of diesel had led to the exit last year of Trinamool Congress from the ruling coalition led by Mr. Singh's Congress party.
The Trinamool Congress has decided to leave the government over plans unveiled last week, said Mamata Banerjee, the party's head and the chief minister of India's West Bengal state.
WSJ: India Government Roiled as Ally Withdraws Over Retail Plan
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