\echo will print contents of whatever follows
http://www.postgresql.org/docs/8.1/static/app-psql.html
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you can use
RAISE NOTICE 'i want to print % and %', var1,var2;
then run your function and click the MESSAGE tab at the bottom of your query
analyzer screen and you'll see sometime like
NOTICE: i want to print and wrote:
Hi,
I have a pl/pgsql in which i have to print various variable value