The pilgrims had gathered in and around the temple for a religious ceremony to mark the sighting of the full moon when the fire broke out.
The situation worsened due to the narrow path leading to the temple getting jammed with devotees, officials said.
The narrow entrance also made it difficult for medical teams to reach the spot, they said.
However, Satara Superintendent of Police C P Kumbhar said the stampede was caused by a chain of events resulting from the coconut-breaking ritual at the door of the temple.
He said the water from the coconuts caused the area outside the entrance to become wet and slippery; some pilgrims dancing with idols on their heads slipped and fell. They were trampled by the huge number of devotees waiting to enter the temple.
Kumbhar said this led to confusion and the crowd turned violent and started torching the shops and pandals on the narrow route leading to the temple. The resultant fire caused gas cylinders, used for cooking and lighting, to explode, which worsened the situation.
"This led to the stampede," Kumbhar reasoned.
However, most believe that the fire was caused by a short circuit in the electrical installation near the temple.
People carrying dead bodies away from the site of the accident.