The death toll now stands at 143, while 155 others have been rescued after their boat caught fire and sank off the remote island of Lampedusa on Thursday, but scores more are still missing.
Integration Minister Cecile Kyenge was on the dock as the corpses were brought to shore and a representative of Pope Francis blessed each one.
"The law on immigration cannot be punitive," said Kyenge, who has faced a torrent of racist abuse as Italy's first black minister.
"The migratory flux has fundamentally changed. We have to understand it and change our laws," she said, adding that she was planning to triple the available accommodation in asylum centres to 24,000 bed spaces because of the growing influx.
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"We cannot accept these tragedies again," she said.
Prime Minister Enrico Letta meanwhile said EU Commission president Jose Manuel Barroso will visit the island on Wednesday and blamed Libya for the growing influx of asylum seekers in Italy.
In an interview with news channel SkyTG24, Letta said Libya -- where the shipwrecked boat departed from -- should adopt "stringent" measures to stop the migrant boats from leaving its shores.
Letta also called for more European assistance to cope with the influx, saying: "Italy cannot be the first country to have everything on its shoulders."
Italy has requested that the refugee issue be put on the agenda of a meeting of European interior ministers in Luxembourg on Tuesday and of a summit of EU leaders in Brussels at the end of the month.
"The Mediterranean cannot remain a huge open-air cemetery. Action must be taken," French Foreign Minister Laurent Fabius told French media.
"The heads of state must translate their outrage into action," he said.
Forty of the 155 survivors -- unaccompanied minors aged between 11 and 17 -- are among those living in squalor in the heavily guarded centre.
Some 30,000 asylum-seekers have arrived in Italy so far this year -- more than four times the number for last year. Most of the arrivals land on Lampedusa, which is closer to north Africa than to Italy.
Hundreds have perished at sea so far in 2013, adding to the estimated 17,000 to 20,000 who have died crossing the sea over the past 20 years.