"Dialogue needs to be initiated immediately to not only end the current strife but also to move towards arriving at long lasting peace and normalcy in Kashmir," the CPI-M said in a statement.
The party urged New Delhi to immediately convene an all-party meeting to discuss the issue.
"At the state level, consultations with all the political forces and civil society groups must be urgently begun.
"The government of India must resume the India-Pakistan dialogue on all outstanding issues. This should also include an all encompassing dialogue with Pakistan," it added.
Jammu and Kashmir is one of the topics touched upon by the Communist Party of India-Marxist which ended a two-day meeting of its Politburo here on Sunday.
The CPI-M expressed grave concern over the deteriorating situation in the Kashmir Valley where clashes between protesters and security forces since the July 8 killing of a top militant has left about 50 people dead and thousands injured.
"The high number of casualties and severe injuries raise serious questions about the brutality with which the security forces have sought to quell the protests," it said.
"The use of supposedly 'non-lethal' pellet bullets on stone throwing youth has led to eye injuries and consequent loss of vision for many of the protesters.
"Most of the injuries have been inflicted above the waist. The use of pellet guns must be stopped immediately."
The CPI-M demanded that those who killed unarmed protesters must be held accountable.
It demanded adequate compensation to all the families which suffered loss of lives and rehabilitation of the injured by ensuring their means of livelihood.
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