The President said she identified only the poorest areas to benefit from the low cost rice and noodles because a general subsidy would not be an effective way to give relief to the people despite the rising cost in prices of basic commodities.
"We can only go as far as the poorest of the poor," she said, citing the negative implications of making goods "artificially cheap" through subsidies, which she said could spell financial troubles for the government.
But Mrs. Arroyo disclosed she would want the P4-billion national livelihood assistance fund to be made available to the poor for projects like sari-sari stores.
She said the Department of Social Welfare and Development could be the direct conduit for the loans to be made available to the indigents who would want to start their own small businesses.
Funding for the pro-poor program comes from the P35 billion that the President earmarked for various government projects, including public works facilities, housing, and school buildings during the first quarter of this year.
Under the project, the TP will sell rice and noodles to families pre-determined to be among the poorest of the poor.
To prevent hoarding, residents will be issued identification cards indicating their status in life and will be allowed to purchase two kilos of rice and several packs of noodles every day.
NFA well-milled rice at the TP will be sold at P18 a kilo, or P6 lower than the standard rice sold at other dealers, while noodles will cost P4.27 a pack.
Apart from rice and noodles, the TP will also sell such basic commodities as coffee, sugar, sardines and cooking oil lower than sari-sari store prices.
During the inauguration, the President announced the release of P500 million to the NFA to support its rice and noodles program.
"I would like to announce that I have ordered the release of P500 million for the budget of NFA to implement its rice and noodles program," the President said.
"This P500 million will go directly to the rice and noodles program and will not be used for the department’s other expenses as they have their own corporate budget," she added.
Among those who accompanied the President in inaugurating the TP store were Environment and Natural Resources Secretary Michael Defensor, Presidential Adviser on Job Generation Arthur Yap, Quezon City Mayor Feliciano Belmonte Jr. and Vice Mayor Herbert Bautista.
The TP program also falls under the President’s commitment to ensure that ordinary Filipinos, particularly the poor, will benefit from the new economic gains achieved by the country through the government’s fiscal reforms.
Implementation of the project is being undertaken jointly by the National Food Authority, DSWD, local government and barangay officials and non-government organizations.
Under the program, the NFA will supply the rice to the stores, the DSWD will identify the depressed barangays, where the TP convenience stores will be located, while the local barangays will closely monitor TP operations to make sure that the poor and the needy benefit from the project.
The DSWD will also provide a P20,000 loan to those who will put up TP stores in their localities.
After the inauguration, the President motored to the nearby National Government Center located at Parokya ng Kristong Hari on Commonwealth Avenue to inspect TP stores that have been in operation since September.
According to Jeanette Dumo, executive director of the Kristong Hari Foundation, her foundation was able to put up P200,000 to fund the building of 16 TP stores within her area.
She added that since September, the 16 TP stores were able to realize a profit of P160,000.
A visibly elated Mrs. Arroyo thanked and congratulated the TP store owners and egged them to work harder so that their lives and the lives of others in their community would improve.
The TP store is different from the rolling stores or Tindahan ni Gloria rolling stores in the sense that the TP store is "fixed" on a piece of land within the community and, according to NFA Administrator Gregorio Tan Jr., there are more commodities being sold at TP stores.