The explosion took place when an unidentified person was loading it in the three-wheeler. Driver Mohd Akram was injured in the incident and has been admitted to a hospital.
The owner of the bag fled the scene leaving another bag of crackers behind, police said.
SHO Abdul Salaam said that the culprit would soon be nabbed. Last year, too, on the occasion of Diwali, a woman and two children had been killed while manufacturing fireworks in the district.