Hi and thanks for the query,
it looks like you have infection of the nose called vestibulitis.
It is very common in diabetics and is precipitated by picking the nose.
you will need a course of antibiotics preferably of the penicillin group.
you will also need a local ointment like mupirocin
You will also need to get your sugars checked.
please see a doctor as soon as possible.
Dr Rajkishori Godhi.