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This is a condition called balanitis.Balanitis is inflammation of the glans penis. Lack of aeration and irritation because of smegma and discharge surrounding the glans penis causes inflammation and edema.More common in uncircumcised males.
It is usually caused by poor hygiene in uncircumcised men. The inflammation can be due to infection, harsh soaps, or failure to properly rinse soap off while bathing.
One common organism associated with balanitis is a yeast known as Candida albicans. Balanitis may occur because of excessive growth of Candida, due to moisture and warmth under the foreskin.
It can be treated by applying Miconazole, an anti-fungal medication.Most cases of balanitis can be controlled with medicated creams and good hygiene.