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Hi,
This could be a fungal infection called Tinea. Tinea cruris is the scientific name for fungal infection of the groin region.
It may involve the inner thighs and genital areas, as well as extending back to the perineum and perianal areas.
Affected areas may appear red, tan, or brown, with flaking, rippling, peeling, or cracking skin associated with itching or a burning sensation in the groin area, thigh skin folds, or anus.
The border may exhibit tiny pimples or even pustules, with central areas that are reddish and dry with small scales.
A warm, damp environment allowing the fungus to cultivate greatly contributes; especially with tight, sweaty or rubbing clothing.
Tinea cruris is best treated with antifungal drugs applied topically. Creams containing tolnaftate, clotrimazole or miconazole can be applied on the affected areas.
If the skin inflammation causes discomfort and itching, glucocorticoid steroids may be combined with the anti-fungal drug to help prevent further irritation due to the patient scratching the area. To cure the infection naturally, keep moist and warm areas of the body clean and dry by using powder.
ref:http://en.wikipedia.org/wiki/Tinea_cruris