In this paper, we present a first-order primal-dual algorithm for tackling the joint demosaicking and deconvolution problem. The proposed algorithm exploits the sparsity of both discrete gradient (TV) and shearlet coefficients as prior knowledge. In order to deal with this sparsity across the color channels, we first decorrelate the signals in color space before sparsifying them spatially, resulting in a separable transform. We demonstrate that this approach yields better results than employing group sparsity strategies. We propose to update the decorrelation operator during the image reconstruction, this approach will result in a significant improvement in PSNR. By relaxing the sparsity of the chrominance signals, we obtain both better objective and subjective image quality compared to other state-of-the-art demosaicking and deconvolution algorithms. Also, color artifacts due to demosaicking are suppressed very well.