Fifty people were wounded in the blasts that ripped through the celebrations [AFP]

Fifty people were also wounded in the blasts, the government confirmed on Tuesday, a day after the explosions disrupted celebrations in the western city of Morelia.

Mexico's El Universal daily newspaper reported that the explosions could have been caused by grenades.

"There are three dead and 50 injured, nine of them very seriously," said Leonel Godoy, the Michoacan state governor who was leading the street celebrations when the blast went off.

Morelia is the capital of Michoacan, a state increasingly hit by drug-gang violence in recent years.

Drug violence

More than 2,700 people have been killed in Mexico violence related to the drugs trade this year as cartels fight an army crackdown ordered by Felipe Calderon, the president.

Warfare between rival gangs has also increased.

El Universal quoted Juan Jose Rosales, a local TV journalist, as saying: "First one person went down and then it was like domino pieces."

Police could not immediately say whether drug gangs were behind the blast, but if so it could be their most brazen attack yet - hitting Mexico's biggest annual street party in President Calderon's home state.

Calderon's office said in a statement: "The government condemns in the strongest terms the violent acts in the city of Morelia during independence day celebrations and will double efforts to support the state of Michoacan."

September 15 is celebrated in Mexico as independence day, when Miguel Hidalgo, a Roman Catholic priest, launched a revolt against Spanish rule in 1810 by ringing a church bell and shouting "Viva Mexico" to a cheering crowd.

The first explosion in Morelia went off during a re-enactment of the bell-ringing.

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