At least 62 migrants are confirmed to have died, with 12 children said to be among the victims, including a baby.
The vessel, thought to have carried some 200 people, broke apart while trying to land near Crotone on Sunday.
People from Afghanistan, Pakistan, Somalia, Syria, Iraq and Iran were said to be on board.
Bodies were recovered from the beach at a nearby seaside resort in the Calabria region.
The coastguard said 80 people had been found alive, "including some who managed to reach the shore after the sinking", meaning many more remain unaccounted for.