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(b) 16.66%
Earlier for ₹x we could purchase y gm of sugar.
Now we pay ₹1.2x for y gm of sugar
(As there was an increase in price so, x + 20%x = 1.2x)
At current rates for ₹x you can purchase y/1.2 gm of sugar
So the reduced consumption is y-(y/1.2)
Percentage change = (reduced consumption/ original consumption ) *100
That is (0.2/1.2) *100 = 16.66% (approx)