Indian Prime Minister Manmohan Singh has appealed to protesters in Kashmir to shun violence - as police shot dead two more demonstrators.
He spoke during an all-party meeting on how to resolve the crisis in Indian-administered Kashmir.It will decide whether to lift 20-year-old emergency laws that shield Indian forces from prosecution.
Eighty-nine protesters have died in anti-India protests since June and the entire Kashmir Valley is under curfew.
Nearly all of them were shot dead by government forces.
The prime minister told Wednesday's meeting at his home in the Indian capital, Delhi: "The only path for lasting peace and prosperity in Jammu and Kashmir is through dialogue and discussion. "We are ready for dialogue with anybody or any group that does not espouse or practise violence."
He added: "I was shocked and distressed to see young men and women - even children - joining the protests on the streets."
The main opposition Bharatiya Janata Party (BJP) and the main regional parties from Kashmir, among others, attended the talks.
Meanwhile, police shot dead two people and wounded several others during a violent demonstration.
Officers in the southern town of Mendhar opened fire at a group of people protesting over reports the Koran was desecrated during 9/11 commemorations in the US last weekend
Police said they opened fire as demonstrators marched on a Christian missionary school, "with intent of setting it ablaze".
A Christian school in the valley was burnt down by protesters on Monday, the worst day of violence so far this summer when police shot dead 18 civilians.A policeman was also killed when he was run over by a lorry driven by demonstrators.
Many analysts see the recent protests as the biggest challenge to Indian rule in Kashmir for two decades.
Mr Singh admitted last week that he was "groping" for a response.
One suggestion, supported by Jammu and Kashmir Chief Minister Omar Abdullah - a government ally - is to ease 20-year-old emergency regulations as a gesture of goodwill.
But the security establishment and the BJP have opposed the move.
Critics say the Armed Forces Special Powers Act makes it impossible to prosecute the security forces for human rights violations.
But Indian generals argue that troops cannot operate in Jammu and Kashmir without the immunity available to them under the act.
The separatist leaders have warned that half-hearted confidence-building measures will not break the impasse, the BBC's Altaf Hussain in Srinagar says.
They insist that the Indian government must launch a serious political initiative towards a resolution of the basic dispute which is about the future status of Kashmir, our correspondent adds.
The Kashmir dispute has been the cause of major tension between India and Pakistan for six decades.