PRESIDENT Estrada has threatened to call off an executive order to partially settle the coconut levy dispute because small coconut farmers have balked at a formula that would favor presidential friend, Eduardo ''Danding'' Cojuangco.

Mr. Estrada has given the farmers 30 days to agree to the EO, according to a multisectoral task force working with Malacañang to iron out a deal between the farmers and Cojuangco and his associates.

The ultimatum was reportedly relayed to the task force by Finance Secretary Jose Pardo on behalf of Mr. Estrada.

The multisectoral group is headed by Quezon Rep. Wigberto Tañada and business leader Jose Concepcion Jr.

Pardo was quoted by AFX News as saying: ''We are appealing to the coconut farmers' groups to get their act together or the President will not sign the executive order, and we will just let the courts resolve this without settlement.''

The finance secretary could not be reached for comment yesterday.

Mr. Estrada was supposed to sign the EO on May 1, Labor Day, after several postponements before because of strong farmer opposition.

The proposed executive order is expected to free up P50 billion in levy funds lodged in 27 percent of San Miguel Corp. shares and the creation of a trust fund to administer the proceeds for the benefit of the coconut industry.

A compromise formula in the EO apparently grants two conditions imposed by Cojuangco: the inclusion of his associates in the Coconut Producers Federation of the Philippines in the trust fund management and a 20 percent share for Cocofed in the annual earnings of the fund.

Ome Royandoyan, executive director of the Philippine Peasant Institute, a task force member, said it appeared that Mr. Estrada was bent on fulfilling his promise to Cojuangco that would allow the latter to get a portion of the trust fund earnings through his Cocofed associates.

Another contentious issue is the matter of subjecting the trust fund to a regular audit by the Commission on Audit, which the farmers want inserted into the EO.

''Malacañang does not want public auditing of the funds. There should be public auditing of the funds. That is non-negotiable. That Malacañang wants to scrap this makes the whole deal fishy,'' Rayondayon said.

''It makes us all wonder: Is this a social pact or a political payback?'' he said. Cojuangco was reportedly one of Mr. Estrada's biggest political and financial supporters.

''We can't grasp why Malacañang wants to give Mr. Cojuangco this favor and treat the public funds as private money,'' another source close to the negotiations said.

He explained that Malacañang was initially pushing for the dismissal of the criminal cases against Cojuangco in connection with the coco levy with the signing of the EO last year. But this proposal was rejected by the multisectoral task force.

According to reliable sources, Cojuangco and former Zamboanga Rep. Maria Clara Lobregat, a Cocofed stalwart, had been meeting with the President on the coco levy deal.

They said Mr. Estrada even wanted to consider that portion of the trust fund that would go to Cojuangco as private funds.

Royandoyan said Malacañang's draft EO had a ''repeal'' clause that would reverse EO 481 issued by former President Ramos declaring the coco levy fund as ''public funds.''

Malacañang also wanted to create a commission that would handle the remainder of the coco levy now estimated to amount to P120 to P150 billion.

Royandoyan said Malacañang and Cojuangco described as ''practical'' their reasons for rejecting the public audit.

Royandoyan said he hoped President Estrada would change his mind and sign the draft EO submitted by the multisectoral task force which reflected the interests of the small coconut farmers.

The levy funds dispute centers on the ownership of the levy funds collected from the coconut industry between 1973 and 1982 in accordance with a decree issued by dictator Ferdinand Marcos.

The farmers allege that Cojuangco, whom Marcos appointed as administrator of the levy, with his associate, had used the funds to acquire the United Coconut Planters Bank, a 47 percent share of SMC and various coconut-related ventures.

Cojuangco proposed to drop his claim against the 27 percent of the 47 percent SMC shares, opting to contest ownership only to the remaining 20 percent that was tied up with graft and other criminal cases at the Sandiganbayan.

But he set as a condition for dropping the claim on the 27 percent the inclusion of his Cocofed associates in the trust fund management and a 20 percent share for the landlord-dominated group from the annual earnings of the trust fund.