UPDATE 1-Riot police clash with Greek farmers at Piraeus port

(Adds government spokesman, negotiations, background)

By Renee Maltezou

ATHENS, Feb 2 (Reuters) - Greek police fired teargas to disperse hundreds of farmers protesting low produce prices at the port of Piraeus on Monday, in the latest violence to hit the conservative government.

Television showed police in full riot gear firing teargas and spraying chemicals at about 500 farmers who had arrived at the country's biggest port from the island of Crete, days after thousands of protesting farmers blocked roads across Greece.

Police tried to hold back the protesters, who were trying to drive their tractors and other farm vehicles to the Agriculture Ministry in Athens. Most sailings to and from Crete were halted.

Farmers, brandishing sticks and black flags, threw tomatoes and potatoes at police, who set up blockades at the exit of the port. Two farmers were slightly injured, police officials said.

"We came with our tractors but police would not let us leave the port," said Giorgos Goniotakis, a farmers' representative. "We want the same support measures given to other farmers to apply to us in Crete as well. We are staying here."

Deputy Finance and Agriculture ministers held meetings with the farmers' representatives in an effort to convince them to return home but protesters vowed to spend the night at the port.

"What is important is the dialogue, not to protest with tractors in the centre of the city," government spokesman Evangelos Antonaros said. "The plan includes compensation for Crete's farmers and specifically olive oil producers."

TRAVEL CHAOS

Protesting Greek farmers had caused 11 days of travel chaos by setting roadblocks across the country but most gave up last week after the government pledged 500 million euros in aid. Blockades continue on-and-off at the border with Bulgaria.

The farmers' protest added to the woes of the conservative government, which is clinging to a one-seat majority in parliament and faces a decline in opinion polls.

December riots, the worst in decades, sparked by the police shooting of a youth but fuelled by discontent about economic policies, forced a cabinet reshuffle.

Most of Greece's farming sector, which makes up roughly 5 percent of GDP, is composed of small-scale farmers who rely on subsidies to survive.

A ballooning budget deficit has left the government with little room for social spending as the global crisis bites. Last week, it slashed its 2009 growth forecast to 1.1 percent and said its budget deficit would come to 3.7 percent of GDP.

Greece has not sought EU approval for the half billion euro farm aid package. The European Commission could penalise Athens for money given on products like cotton, olive oil and wheat.

Agriculture Minister Sotiris Hatzigakis is expected to meet Agriculture Commissioner Mariann Fischer Boel in Brussels on Wednesday. He has said the aid does not violate EU rules. (Additional reporting by Angeliki Koutantou; Editing by Dominic Evans)