Thai soldiers shot dead 15 suspected drug smuggled in a gun fight near the border with meth-production capital Myanmar.

Squaddies tracked the mules carrying backpacks through dense jungle in Chiang Rai province in the north Thailand at around 6pm on December 16.

The authorities allegedly identified themselves and ordered the group to surrender but they responded by opening fire, resulting in a gunfight that lasted around five minutes.

The team, deployed by Major General Prapat Phopsuwan, commander of Pha Muang Force, and Colonel Nathee Timsen, commander of the Thap Chao Tak Task Force, were all unharmed and returned to base.

However, at 7.30 AM the following morning, more operational units arrived and discovered 15 bodies along with 17 sacks that had been modified into backpacks, containing a total of 2.04 million pills of amphetamine. The drugs were handed to police.

The scene was located just 400 metres from the border with Myanmar, or Buma, and evidence of a retreat was identified, leading to speculation that some of the suspects managed to escape, while others may have sustained injuries.

Major General Prapat said: 'From October to December this year, the drug interceptions have been six times higher than the same period last year.'

In October, there were two incidents with one suspect killed.

In November, there were five clashes resulting in four suspects' deaths and the seizure of several million pills of narcotics.

In December, there have been two fights, including the recent incident.

Myanmar has in recent years become the meth production capital of the world - with gangs from China controlling many of the labs. The recent civil war sparked by the military removal of Aung San Suu Kyi has lead to a power struggle between the army, rebel groups and crime syndicates, for control of the industry.

Officials believe most of the meth is produced in the Shan State of Myanmar before being distributed through neighbouring countries where prices are higher then ending up in the most expensive markets of Australia, Japan, Hong Kong, Taiwan, and Singapore.