The discovery of the new Sea route from Europe to Calicut or Kozlikode in India by Vasco da Gama opened a new episode in the history of Kerala as the epoch of European conquest commenced.
The arrival of the Portuguese was followed by the Dutch, British and the French who also wanted to pursue profitable trade with India with the spice trade being their topmost priority.
After landing in India the Dutch established the Dutch East India Company in the year 1592 and gradually started establishing themselves in various parts of Kerala. They made treaties or pacts with various South Indian rulers which vested them with certain powers and trade rights. In 1604, the Dutch came at the Malabar Coast and diplomatically taking advantage of the existing enmity between Kochi and Kozhikode, they drove away the Portuguese from their fortresses.
The Dutch and the British jointly abolished the monopoly of the spice trade of the Portuaguese. The Dutch also amplified and monopolized their trade links in the areas of Kayakulum, Purakkad, Quilon and Travancore by 1662. The Dutch Admiral Van der Hagen signed a political and profitable treaty with Zamorin of Calicut and in 1664 they obtained monopoly of the Pepper trade in Cannanore. They conquered Cochin in 1663.
The Dutch who dwelled in India for 125 years remained only for the purpose of profit and dealt in the import of Coffee, Chinese silk, weapons, copper, mineral oil, coal etc and export of Pepper, coconut oil, cashew kernel, lemon grass oil, cashew shell extract, teak, rose wood and so on.
The distinguished botanical work on the medicinal value of plants of Kerala, Hortus Malabaricus is attributed to them. The Dutch Governor's mansion, the Dutch Palace at Mattancherry, Kochi and the Bolgatty Palace at Kochi, are some of the edifices that reminds us of the existence of the Dutch in Indian terra firma in the long past.
However, the rise of Travancore eventually saw the end of the Dutch supremacy in India as the valiant Travancore ruler Marthanda Varma (1729-1758) weakened and defeated the Dutch powers in the conflict of Koiachel and finally they came under the British authority losing all their identity and control over India.
Kerala has its various trades across the world now itself. Most of the trade related to the different spices. Here Pampally Trade Company has a small trading division. They implemented a Store called Pampally Stores in Badagara near to Calicut city.