I remember watching a movies in the early 90s. Females were wearing blue or reds outfits and see through shaws over their heads. Father, having sex with daughter in her bedroom, while mother telling her it was okay, they just wanted a baby. Please help me with the title.

I think you mean THE HANDMAIDENS TALE.
It wasn't the father having sex, it was their commander,the woman was the commanders wife, the females were basically baby makers imprisoned by the richer class who were infertile.

Sorry, I meant the Handmaids tale, not handmaidens. The book is by Margaret Attwood.