With the kingdom Cochin falling in to its hands, the power and prowess of the Dutch enhanced. Even the native kings who were in trade agreement with the English East India Company too had second thoughts. The native feudatory princes of Purakkad, Paravur, Alangadi and Edappally signed trade agreement with the Dutch accepting their suzerainty. The Dutch captured from the Portuguese the fort of Anjalose at Cannannore in February 1663 and then signed trade agreement with Kolathiri.
In 1664, the year in which the Dutch entered into trade agreement with Ali Raja which helped them to expand their trade in pepper and cardamon, they had the monopoly over pepper trade in Cannanore. The Dutch were thus able to establish the trade monopoly in north Kerala in no time.
It was James Hustaert who had been charged by the Company with the responsibility of making efficient trade links with the native rulers. He had been the chief councillor in India and Ceylon. In accordance with his suggestions, Nieuhoff was appointed to meet and enter into trade agreement with kings of south Kerala. Accordingly he came over the shores of Kayamkulam on 21 January in 1664 along with a translator and some navigators in a small ship.
As the meeting with the king of Kayamkulam was successful, the Dutch group started their voyage towards Purakkad after having been given instructions to make trade agreements. The headquarters of Purakkad feudatory principality, now under the rule of Chempakassery clan, was at Ambalappuzha. Once a staunch ally of the Portuguese, the King of Purakkad agreed to accept the suzerainty of the Dutch. With the suggestions of the ruler of Purakkad, Nieuhoff reached Cochin and brought them to the attention of Hustaert and then returned to Purakkad with new suggestions. They conversed in Portuguese language.The 30-year-old king wore ornaments on his hands and ears studded with diamonds and gems. Nieuhoff recorded that there was no theft on his land since the administration of justice was strict. Purakkad had about 500 warships. It was a kingdom which produced pepper aplenty. Nieuhoff gave assurance to the king that pepper would be weighed down at Purakkad itself and then purchased, as against the practice that had been followed hitherto where the pepper gathered was taken aboard and taken to Cochin and then weighing it down.
Nieuhoff and his group then reached at Karunagappally. The place here named 'Maruthurkulagara' was pronounced by the westerners as Martha or Martan. Residing in a building constructed in the architectural mode of Kerala, the Dutch group sent a message to the feudatory prince. On the following day itself, the group got the message from the native ruler in return inviting them to the palace. At the palace they saw the prince with Muhammadeans casting doubt on them that they were in contact with Muslim traders of Cannannore. The conditions as put forward by the Dutch group during talks such as allowing them to collect pepper, bark of cinnamon and a ban on import of opium were opposed by the Muslim traders. After prolonged talks, the feudatory prince then agreed to give monopoly of pepper trade to the Dutch. Later the Chief Lord under the feudatory prince gave a reception in honour of the visitors where chicken dishes, payasam A traditional sweet broth of South India made by boiling rice in water to be added later with sugar or jaggery, ghee, spices etc for taste and flavour.
, sweetened fruits and pastry were supplied.
Third Dutch War
Coming to know that trade agreement was signed with the prince of Purakkad the prince of Kayamkulam gave away to Nieuhoff a present, filigree-sewn cloak through a special messenger. Then he moved to Kollam. Since the rulers with whom the trade agreements to be signed were Queen of Quilon,the Queen of Attingal,the Queen of Kottarakkara and the King of Travancore. Source: Dr.T.I Ponnan- Dutch Hegemony in Malabar and its Collapse – University of Kerala Publication.
During this period there broke out war between the Dutch, and the English in Europe. The war was caused by the seizure of possessions of the Dutch in West Indies, South Africa and the America by the British (1665-67). The Dutch navy defeated the English several times .The war ended as a result of the peace treaty signed by the two powers later.