KATHMANDU, Feb 26 (Reuters) - Traffic on highways in Nepal's southern plains ground to a halt on Monday as members of an ethnic group seeking regional autonomy called a week-long transport strike to force concessions, officials said.

Thousands of bus passengers were stranded after activists of the Madhesi People's Rights Forum urged all drivers to stay off the roads to further a campaign for greater political and economic power.

The group aims to shut all 22 trading points along Nepal's border with India, the entry point for the bulk of the landlocked Himalayan nation's essential goods and fuel.

"There is no import or export today because no vehicle is moving," said Yogendra Ojha, a customs official in Biratnagar, a key trading point in south-east Nepal.

Residents said most businesses were open despite the strike.

"We have completely stopped supplies from coming into Nepal from India," said Upendra Yadav, head of the Madhesi group.

The Madhesis, which comprise about a third of Nepal's population, are demanding more jobs in government, the army and police, and more seats in parliament to end what they call the dominance of the country's hill dwellers.

At least 25 people have been killed this year in protests by Madhesis in the southern Terai region, Nepal's agricultural and industrial hub, where they dominate.

The group suspended protests after Prime Minister Girija Prasad Koirala agreed to meet some of their demands.

But it refused a meeting with government officials, insisting Home Minister Krishna Prasad Sitaula, accused of ordering excessive force during the protests, resign.

It is also demanding an investigation into police crackdowns.

During the past few years of their revolt, Nepal's Maoist rebels, who signed a peace deal last year, often closed down roads leading into Kathmandu in an attempt to trigger protests against the rule of King Gyanendra.

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