Khanna is an olden town situated on the historic Grand Trunk Road (National Highway No 1), 45 km southeast of Ludhiana, in Punjab. It is considered the biggest grain market in Asia. Khanna is a few kilometers northwest of Mandi Gobindgarh in Fatehgarh Sahib District. Khanna is mainly popular as Asiaís largest grain mandi, there are 250 arhtiyas or licensed commission agents, selling 10 lakh tonnes of wheat in a season. Khanna is an ancient town, which came into existence 500 years back. History reveals that Sher Shah Suri built a number of Sarais (inns) at every 12 to 15 miles along Delhi Lahore road. One of the Sarais was built in this area that is still known as Purani Sarai. After the decline of mughal rule in Punjab Banda Bahadur captured the area from Sirhind to Hoshiarpur. After that a jathedar of Dahedu controlled and occupied the whole of area from Dahedu to Nabha. He married his daughter Daya Kaur to king of Nabha. When a family dispute arose between king of Nabha and Rani Daya Kaur she left Nabha for good and came back to Dahedu her parental home. According to Indian conventions she could not remain with her parents forever.
Therefore, her father cut out a KANA, which signifies a small portion of territory between Dahedu and Nabha. With passage of time word KANA came to be known as KHANNA. The original area of Khanna is chotta khanna while the modern extension is now called Khanna.
The Climate here is typical of Punjab plain i.e. very hot in summer and very cold in winter. The Khanna city is generally dry and hot, with monsoon lasting three months. Both summer and winter are severe. The annual average rainfall is 688mm. On an average there are 61 rainy days. The variation in rainfall is appreciable. The month of May is the hottest with the mean monthly maximum temperature of 43.1o Celsius. January is the coldest month with mean monthly minimum temperature of 2.1o Celsius. The year may be divided into four seasons. The period from about middle of November to February is the cold season. This is followed by the summer season from March to about the end of June. The southwest monsoon season commences late in June and continues up to about middle of September. The period from mid September to the middle of November constitutes the post-monsoon or transition season.