According to Satna superintendent of police KC Jain, two families got into a fight inside the rope barriers set up for the parikrama. The barriers gave way during the brawl and the stampede followed.
The stampede took place on the rear side of the hill near Bharat Milap Temple, he said.
Devotees, mostly women, encircle the mountain by lying and rolling on the path for worship.
Satna collector ML Meena has ordered a magisterial inquiry.
Madhya Pradesh chief minister Shivraj Singh Chouhan has announced a compensation of Rs. 2 lakh each to the family of those killed in the stampede, Rs. 50,000 to those who were seriously injured and Rs. 10,000 to those who received minor injury.
(With PTI inputs)