At least five of the injured people are thought to be in critical condition.
The cache of explosives detonated late on Friday night in the Nowgam area near Srinagar.
Government sources told foreign news agencies that some bodies were completely burnt, delaying the identification process.
One police official told news reporters that the explosion was so powerful that some body parts were recovered from surrounding houses 100 meters to 200 meters away.
Authorities believe that the dead are mostly police officers and forensic experts who were examining the material when the explosion took place. Two government officers are thought to be among the dead.
Indian journalists tweeted out that their sources have confirmed that the explosion was not a terror attack.
The blast took plays days after another explosion in New Delhi was categorised a “terror attack” by the Indian government. At least 12 people died when a car caught fire near the historic Red Fort.