Police Commissioner V. Ravindra Said says the bodies were charred beyond recognition in Wednesday's fire in Kotalingala, a village in Telangana state.
The cause of the fire is being investigated.
Kotalingala is 200km north of Hyderabad, the joint capital of Telangana and Andhra Pradesh states.
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India has a huge demand for firecrackers, which are used in religious festivals and weddings.
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