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Digital Color Image required large amount of space to store and large bandwidth to transmit it. Due to limitations in bandwidth and in storage space, it is vital requirement to compresses digital color image. Color image compression is required with negligible loss in image quality for the effective use of further restored image. To meet this, numerous image compression techniques are developed in last several years. This paper analyses these techniques and presents a compression among them to find out the best method for digital color image compression. The objective of this paper is also to find out the best approach for developing new way of digital color image compression with minimum loss in image quality.