Gulbir Bhatia, proprietor, Prime ABGB, said, "This is a strategic move by the vendors to promote 512MB over 256MB. As of now, two 256MB RAM chips are more expensive than one 512MB chip. So buyers prefer the latter."
Manish Jain, proprietor, Mahalaxmi Infotech, said, "The vendors are looking forward to phase out 128MB RAM from the market to make way for 1GB RAM, which has already entered the market."
According to market feedback, the 512MB RAM is fast becoming an entry-level chip and its increased demand has lowered the prices of the chips entering the Indian market.
----
I also think not as many PCs/upgrades were sold around Christmas as were anticipated and left inventories higher than anticipated. You may also see rising fuel costs at play here as manufacturers look to get their goods to distributors before shipping costs rise in relation to recently spiking fuel costs.