The incident took place when the tempo carrying devotees to a Shiva temple collided with the tractor-trolley killing Sangita (25) and her one-year-old daughter Anushka on the spot, they said.
Eight injured were rushed to hospital, where their condition was stated to be stable.
The bodies have been sent for post-mortem.
Police have seized the tractor-trolley and are trying to track down absconding driver.