The stampede took place early in the morning when people gathered in front of the house of Shamim Talukder, who owns a chewing tobacco factory, to receive free gifts and clothes and tried to force their way in.
23 women and four children got trampled to death in Mymensingh town, officials said.
"About 1,500 people had gathered outside the businessman's house to collect zakat (charity)," witnesses said.
Television pictures showed scenes of devastation, with hundreds of blood-spattered sandals lying at the factory gate.
Ambia Begum, 50, who had come to collect charity, alleged that workers of businessman's factory had swooped on them with batons.
"They beat us up severely," The Daily Star quoted Ambia as saying. The ages of the women killed in the stampede range from 10-65 years.
The doctors at the hospital said that the death toll could rise as many are critically injured. The reason of deaths was suffocation and stampede, they said.
President Abdul Hamid, Prime Minister Sheikh Hasina and Speaker of the parliament Shirin Sharmin Chaudhury expressed their sympathy to the victims' family members.
Three investigation committees have been formed to probe into the incident.
Two of the investigation committees are set up by the police, whereas the third one has been formed by the district administration.
"We have asked our committee to submit its report in the next three days," a district administration official said.
During Ramzan, it is mandatory for Muslims to donate money, food and clothes to the poor as charity.