"Market wants very cheap programmer for very very cheap microcontroller."

No you are wrong. Market wants it free - but the question is: are you game? It is time that you made the decision- either go after this "low cost " market and make products that keep coming back ( for service of course !) or stick to the quality concsious clientele and take pride in delivering reliable goods, making the customers come back.

"I still feel there should be a tutorial on how to make a programmer."

But why do you insist on learning something that is on the way out? The low cost argument falls flat here - the whole investment on a programmer is eliminated.

"My Indian friends not even Avisekh/Raghu care/dare to.....advise!"

Enough of advise not to venture out making a programmer has been given. As to the availability of ISP chips - Philips, Cygnal, Atmel all brands are there. The Philips 89c51RD2 costs about INR 300 ( 6 USD )per piece in one off quantities. The C8051F020 is at about INR 1100. I dont use Atmel ISP chips, but they may not be any different. I am yet to come across an application in my area that demanded more than what the above two have to offer. For small instruments like RPM counters, cycle counters there is always the 89c2051, 89c51 and 89c52.

Raghu