It seems to be the price are reduced for the memory devices now.
Here is an another product at cheap price, 16GB pendrive Sandisk Cruzer.
Sandisk 16GB Cruzer Blade Pen Drive, Price, Features, Specifications, Reviews | Tradus
I got it 10 days back for Rs.529 with free shipping. It is very good but slow in copying the files. I am using this for my yamaha receiver for playing songs thru usb port. It is of a very minimal size and works nice for the price.
Thanks