Russian government agencies must clamp down on food speculators, President Dmitry Medvedev said on Thursday.

"The Prosecutor General's Office, the Internal Affairs Ministry, the Antimonopoly Service and the Tariff Service must deal with those who jack up prices and gain unearned profits. Whoever they are - processers or trade organizations," Medvedev told a State Council meeting.

He said those guilty of speculative practices "must be slapped on the wrist."

Medvedev also promised to take immediate action to support households if food prices increased, adding that price hikes were totally unjustified.

"If the situation changes, I will take immediate action to support households - this is our priority," Medvedev said.

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

Medvedev directed chief regional administrators, especially governors, to monitor food prices by regularly visiting food stores and farmers markets, and punish those involved in speculation.

Asked by the president whether he visited retail stores, Saratov Governor Pavel Ipatov, answered in the affirmative.

"That is absolutely necessary both for you and your colleagues, and I will raise that matter," Medvedev said during a meeting with Ipatov.

"People understand that this is panic buying, speculation," Medvedev said.

"However, people remember that if something disappears [off the shelves] they need to start hoarding."

He said that the current situation was different from earlier food shortages in Russia, stressing that the government should have the ability to maintain control over the retail sector.

SARATOV, September 2 (RIA Novosti)