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Let the price of the sugar be X Rs. per Kg.

And let the man buy Y kg of sugar.

So the amount of sugar he buys for Rs. 200 is

200 = XY............... (1)

Now it is given that there is a rise of 25% in the price of sugar.

So the price of the sugar becomes = (X + $\dfrac{{25}}{{100}}$ X) Rs/Kg.

Now due to this he has to buy 5 Kg less sugar.

So the amount of sugar he bought = (Y – 5) Kg.

The total amount he has to spend is the same i.e. 200 Rs.

Therefore, 200 = $\left( {X + \dfrac{{25}}{{100}}X} \right)\left( {Y - 5} \right)$

Now simplify we have,

$ \Rightarrow 200 = \dfrac{5}{4}XY - \dfrac{{25}}{4}X$

Now substitute the value of XY from equation (1) in the above equation we have,

$ \Rightarrow 200 = \dfrac{5}{4}\left( {200} \right) - \dfrac{{25}}{4}X$

Now simplify we have,

$ \Rightarrow \dfrac{{25}}{4}X = \dfrac{5}{4}\left( {200} \right) - 200$

$ \Rightarrow \dfrac{{25}}{4}X = \dfrac{1}{4}\left( {200} \right)$

$ \Rightarrow X = \dfrac{{200}}{{25}} = 8$ Rs/kg.

So the original price of the sugar is 8 Rs/Kg.

Now we have to calculate the increased price per Kg.

So the increased price is the sum of the original price of the sugar and the 25% of the original price of the sugar per kg.

Therefore, increased price per kg = $8 + 8\left( {\dfrac{{25}}{{100}}} \right) = 8 + \dfrac{8}{4} = 8 + 2 = 10$ Rs/Kg.