The flight instructor (CFI) reported that on roll-out from a touch-and-go landing, the student looked down for the flap handle as he raised the flaps. During this process, the aircraft started to go to the right. The CFI stated, 'I tried to correct to the left using rudder and aileron, then also using power, but the plane ground looped to the right and the left wing dipped, striking the ground.' Additionally, the CFI indicated that there were no mechanical malfunctions with the aircraft before the accident.