I find the photograph quite shocking. It is such an obvious display of affection by a bhikkhu. I understand it to be an offence of wrong doing — one of the clauses to Sanghadisesa 2
Intention. The Vinita-vatthu contains cases of a bhikkhu who caresses his mother out of filial affection, one who caresses his daughter out of fatherly affection, and one who caresses his sister out of brotherly affection. In each case the penalty is a dukkaṭa.
The other consideration is that of wrong livelihood as a corrupter of families under Sanghadisesa 13
3) He lives in unbecoming association with householders.
You may think that affection is a wholesome dhamma, but if so, please explain how it could lead to grief and fear. Piya Vagga — Dhammapada
Of course, there is no harm in loving-kindness (metta),
or sympathetic-joy (muditā),
which are wholesome dhammas, but there is no need to cuddle children to show them kindness and compassion. If a very young girl touches a bhikkhu, there is no need to push her away for fear of being accused of a Sanghadisesa offence, but there no reason to actively take hold of and hug a child. Perhaps there might be if a young child is very distressed or injured, and in need of reassurance. I take it to be self-evident that if a woman is drowning there is no offence in pulling her to safety.
Although the receiving cloth is not used in Burma, well-informed female lay supporters take care to avoid touching bhikkhus when offering things to them.
Even eye-contact is avoided — though we westerners find that very difficult when talking to people. While listening to the Dhamma, ladies sit with their hand in anjali, and their eyes downcast — not making eye-contact at all.
If you want further clarification, I advise visiting Sayādaw U Dhammānanda in Wat Tamao, Lampang, which is not far from you. I hope that the Sayādaw is still living — he is an exemplary Dhamma teacher. I don't think he speaks much English, but I assume he knows Thai quite well as he has lived in Thailand for many years.