There is no threat of food shortages in the wake of Russia's devastating drought, and all price hikes are caused by speculators, President Dmitry Medvedev said on Thursday.

"A number of regions are expressing concern over the price hikes and the lack of a wide range of goods. But there are no preconditions for a food shortages in our country regardless of the tough year," Medvedev told a State Council meeting in southern Russian city of Saratov.

Medvedev said Russia had enough grain reserves for domestic consumption. The planned grain crop will reach at least 60 million tons, he added.

Medvedev also announced the establishment of a special temporary government commission aimed at coordinating state, regional and business efforts to tackle the economic consequences of the drought.

He also said the government would not allow regional protectionism.

"We have got a common market in the country," the president said, urging governors not to hoard food inside their regions.

Russia experienced its worst ever drought this summer, leading to the destruction of a quarter of its crops and forcing the government to suspend grain exports.

SARATOV, September 2 (RIA Novosti)