How to set up manually the next value of auto_increment?
http://www.postgresql.org/docs/current/static/functions-sequence.html
select setval('sequence-name', <new-value>);
You can get the sequence name from the the table definition:
id | integer | not null default nextval('id_seq'::regclass)
In this case the sequence is named 'id_seq'
Edit (10x to @Glenn):
SELECT setval('id_seq', max(id)) FROM table;
I think there is a simpler way:
ALTER SEQUENCE "seq_product_id" RESTART WITH 10