The decision was taken at the party's core group meeting.
Bharatiya Janata Party (BJP) leader Ananth Kumar said after the meeting that the core group observed that Shinde's remarks have hurt Hindu sentiments.
He said the party leaders also condemned his comments linking BJP and Rashriya Swayamsevak Sangh training camps to terrorism.
"The party has decided that its members and workers will boycott all public programmes in which Shinde is taking part. He will be shown black flags," Ananth Kumar said.
He said BJP will also not respond to any communication or request for meetings from Shinde to the party's senior leaders.
BJP president Rajnath Singh said BJP will raise Shinde's controversial remarks in parliament, but said his party does not intend to disrupt proceedings when Shinde rises to speak in parliament.
The BJP had held nationwide protests against Shinde's statement Jan 24 and its leaders had said the party will create a situation in the two houses of parliament that will force Prime Minister Manmohan Singh to remove the minister.
The Budget Session of Parliament is expected to start in the second half of February.
BJP leaders have demanded that the Prime Minister and Congress president Sonia Gandhi should "apologise" for Shinde's remarks and the minister should be sacked.
The BJP leaders who attended the core committee meeting included LK Advani, Rajnath Singh, Sushma Swaraj, Nitin Gadkari, Ananth Kumar and Arun Jaitley.
Shinde may find it difficult to get the government business passed without cooperation from BJP, the main opposition.
BJP sources said the situation could ease if Shinde tenders an aplogy for his remarks.
New Delhi: The BJP on Friday decided it will boycott public programmes of Home Minister Sushilkumar Shinde and not respond to any communication from him as leader of house in Lok Sabha over his "Hindu terrorism" and "saffron terrorism" remarks at the Congress conclave in Jaipur last month.
First Published: Friday, February 01, 2013, 21:35