Discussions about increasing the overall crowd restrictions for Agfest are being held between the government and Public Health.
Premier Peter Gutwein said the discussion was being had, but a decision had not yet been made for the popular rural event.
"The problem with Agfest is that it draws a large number of people from across the state and interstate," he said.
He said the event posed "a real risk" if a COVID-19 positive person did attend one of the four days.
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Frustration is growing in the community about the low crowd cap numbers for Agfest, which is held the second weekend in May.
It has become particularly burdensome for the school community, with many locked out of the event in favour of paying customers.
Rural Youth media and promotions spokesman Dylan Bellchambers on Tuesday said Rural Youth understood the frustration, however the decision to scale back the number of school tickets was made in January.
"We really like to promote agriculture to students and we spend a lot of time working to create a positive experience for the students, with things like our tailor-made stamp trail," he said.
"However, it was a difficult decision we had to make, considering school students don't contribute economically to the event."
A decision by National Cabinet to introduce 100 per cent capacity to indoor and outdoor ticketed events was expected to have a May start date, however no date has been locked in as yet.
Mr Bellchambers said Rural Youth hoped the cap would be increased to a total of 15,000 people - it's currently at 10,000.
Tickets for all days except Wednesday have sold out. However a second allotment of tickets for Friday and Saturday are expected to be released on April 22.
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