The deceased include ten women and three children.
A major fire broke out at a cracker factory in Khob Darwaza area of Badnagar in Ujjain district on Saturday evening.
Aneesa Bi, who had suffered 100 per cent burn injuries, passed away this morning at the MY Hospital, police said.
Badnagar Police Station in-charge Rakesh Kumar Nain said that factory owner Yousuf Hussain (32) and supervisor Shabbeer Hussain (28) had been arrested under section 304 (causing death by negligence) and 286 (negligent conduct with respect to explosive substances) of the Indian Penal Code and under the provisions of the Explosives Act.
Madhya Pradesh government has already announced aid of Rs 1.5 lakh to the kin of those killed and Rs 50,000 to the injured persons.