@Jeff : Thanks for pointing this out. Turns out that was the case.
@Tom: Thank you for the reference to random_page_cost parameters. It would be very useful for us. Would go through the rest of the documentation as well.
On Wed, Jul 31, 2013 at 3:55 PM, Tom Lane <tgl@sss.pgh.pa.us> wrote:
Your database is evidently fully cached in memory. If that's the operating mode you expect, you need to change the planner's cost parameters, in particular reduce random_page_cost to equal seq_page_cost. There is plenty of material about this on the PG wiki or in the pgsql-performance archives.