This paper describes a color image compression scheme based on absolute moment block truncation coding (AMBTC) using Huffman coding. High degree of correlation between the RGB planes of a color image is reduced by transforming them to Y, C_b, C_r planes. Each plane is then encoded separately using the proposed method. The experiment has been conducted using the proposed scheme on standard color images.  Experimental results show that the compression ratio of the proposed method is significantly improved when compared to color BTC and color AMBTC, with a relative distortion of reconstructed images.