Increase in the price of rice = 25%
∴ increased in ₹ 400 = 25% of ₹ 400
= 400 x (25/100) = ₹ 100
∵ Increased in rate of rice in 25%, there are 20kg less rice in ₹ 400 i.e., rate of 20 kg rice
= ₹ 100
= Rate of 1kg rice = 100/20 = ₹ 5
∴ Increased price of rice = ₹ 5 per kg